Get a Grip on the Hidden Cost of Retail Returns by Creating Visibility and Ownership

Archived Published: 04 March 2015 ID: G00270257


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Retail returns are rising rapidly, but the cost is often hidden in supply chain rather than impacting individual product profitability. This research provides merchandising and supply chain leaders with a way to highlight the true costs of returns to address their impact.

Table of Contents

  • Analysis
  • Impacts and Recommendations
    • Many retailers are recording returns as a supply chain cost, obscuring their impact on product performance profitability
    • Retailers often focus on gross sales as a KPI, creating an environment in which the cost of returns is suppressed, and interest in, and ownership of, returns management within the business are limited
    • A small percentage of consumers and assortments generates most returns, making retailers vulnerable to being overrun with returns
  • Gartner Recommended Reading
© 2015 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

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