Technology continues to transform the retail industry and revolutionise the way businesses operate. However, with this revolution comes new challenges for retailers in terms of fraudulent shopper activity.
Every day, retailers suffer from the effects of fraudulent returns, intentional returning or ‘wardrobing’ - shoppers purchasing a garment to wear once with labels intact, and then sending it back to get a full refund. Whilst not strictly illegal, the act of wardrobing is fraud and on the rise.
A recent survey found that 13% of UK consumers have purchased clothing with the intention of wearing it once and then returning it for a refund. It is particularly prevalent among 25 to 34-year-olds, where one in five admit to fraudulently returning goods.
Two in three retailers (64.5%) have encountered customers who use an item and then return it for a refund, with seasoned ‘wardrobers’ returning around 20 items a year. This figure increases when the shopper becomes confident the store won’t reject their merchandise. Competing in the retail sector is challenging, and the ‘wardrobing’ problem is exacerbated by the fact that, like shoplifters, ‘wardrobers’ share information about where and how they wardrobe.
To download the full white paper report, click here.
Checkpoint Systems, a division of CCL Industries, addresses two critical issues for its customers: Improving Profitability and Improving Consumer experience. With consumer demands accelerating at an extraordinary rate driven by technology, Checkpoint recognizes the challenges faced by its customers in the rapidly evolving retail market. We deliver intelligent solutions – bringing clarity and efficiency into the retail environment anytime, anywhere. Through a unique offering of software, hardware, labels, tags and connected cloud based solutions, Checkpoint optimizes operational efficiencies through analysis of real time data captured throughout the Supply Chain and in store then translating this to clear concise actions and tasks.
We provide end-to-end solutions enabling retailers to achieve accurate real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft, thus improving merchandise availability and the shopper’s experience. Checkpoint’s solutions are built upon 48 years of radio frequency technology expertise, innovative high-theft and loss-prevention solutions, market-leading RFID hardware, RFID software, and comprehensive labeling capabilities, to brand, secure and track merchandise from source to shelf. Checkpoint’s customers benefit from increased sales and profits by implementing merchandise availability solutions, to ensure the right merchandise is available at the right place and time when consumers are ready to buy. Checkpoint operates in every major geographic market and employs 4,500 people worldwide.