Reverse Logistics in the Fashion Retail Industry
The fashion retail industry experienced a disappointing year end: overall retail sales volumes in December dropped 2% while high street retail giants such as Next, Primark, Debenhams, and M&S reported lower-than-expected-earnings. On top of this, January brought with it a flood of product returns: relaxed return policies and the increase in online spending lead UK consumers to send or bring back one in three purchases. Between the excess inventory and returns, retailers have been left with billions of pounds in merchandise that must be accounted for. This trend, and the growing cost associated with it, creates a new urgency for retailers to rethink their reverse logistics processes; this is especially important when it comes to the merchandise that cannot be returned to store or virtual shelves and is slated for liquidation. Having a proper liquidation solution in place is vital – especially one that recoups the highest amount possible for the merchandise.