The retail industry is witnessing significant changes in return policies as brands aim to adapt to the challenges posed by increased online shopping and holiday returns. Notably, a survey by Happy Returns and the National Retail Federation in 2025 has highlighted that around 17% of holiday sales are anticipated to be returned, prompting brands to adjust their return strategies accordingly.
Brands Rethink Return Policies
Joe Vancena, vice president of marketing at Loop, disclosed that many brands are implementing temporary return policies to address the unique dynamics of the holiday season. For some, the conventional 30-day return period does not suffice, given travel schedules and gifting. Flexible policies, including free returns and exchanges, are proving crucial as 58% of consumers have switched brands due to strict return policies, while 92% say return fees influence their shopping decisions.
Vancena emphasised the importance of adopting lenient return policies for customer acquisition and retention during the season. Ensuring cost-free returns and extending return periods can boost sales, conversion rates, first-time customers, and overall revenue, outweighing the operational costs associated with returns.
Testing Impact of Return Policies
To evaluate the effectiveness of new policies, brands are introducing advertising campaigns as early as August, highlighting offers such as free returns to gauge increased click rates. Moreover, emphasising return policies near the ‘add to cart’ button on product pages has shown to enhance sales.
Beyond greater return flexibility, some brands, including beauty brand Jones Road, use exchange interactions to upsell customers. According to Loop data, Jones Road achieved an additional $197,000 in new revenue and retained $3.1 million in sales by offering exchanges and encouraging further purchases during these interactions.
Trade Tensions and Economic Ramifications
In another development, the ongoing trade dispute between the United States and Canada is escalating. As of September 8, Canada will introduce retaliatory tariffs in response to the U.S.’s tariffs on $20 billion worth of products. Canadian tariffs will mirror the U.S. measures, ranging from 15% to 50% on over 700 goods, impacting industries like steel and electronics.
This new trade layer could test North America’s production resilience, particularly against the backdrop of a precarious global economy, as warned by the World Economic Forum.
Brand Initiatives and Innovations
Quince Sample Sale Success
The online retailer Quince is increasingly exploring offline channels, recently hosting its debut sample sale in San Francisco. The event exceeded expectations, closing six hours early with massive customer turnout and a diverse product range. Quince’s strategy is helping showcase its expanded product lineup beyond women’s apparel.
Simon Property Group’s New Media Network
Simon Property Group has launched Simon Media Network, aiming to revolutionise advertising by leveraging detailed insights about shopper behaviour at its malls. This new initiative positions itself as an audience intelligence product, enabling targeted advertising supported by comprehensive consumer data.
Noteworthy Industry Updates
- Volkswagen’s Strategic Shift – The car manufacturer is recalibrating strategies in response to growing pressures in China.
- Nestlé Purina Expands – The pet care branch has inaugurated a $550 million plant in Ohio.
- David Protein’s Valuation Surge – The company has reached a valuation of $2.25 billion following a recent funding round.
Reporting based on coverage first published by modernretail.co.