Blog: US retailers predict $2.2bn holiday fraud loss

Katie Smith | 21 December 2015

Holiday return fraud is likely to cost US retailers US$2.2bn this year, up 15.8% from a year ago, according to new research.

A survey by the National Retail Federation (NRF) found that 3.5% of holiday returns are likely to be fraudulent in 2015, up from the estimated 3% reported last year.

Retailers surveyed estimate total annual returns will reach $260.5bn, or 8% of total retail sales, with $9.1bn of retailers’ annual returns expected to be fraudulent, or 3.5% of the industry’s total returns.

In addition, 91.9% of retailers surveyed said they have experienced the return of stolen merchandise, down slightly from 92.7% last year. However, the survey found one-third (33.9%) of retail chains have experienced return fraud with use of e-receipts, up from 18.2% last year.

Wardrobing, or the return of used, non-defective merchandise, also presents a challenge for retailers, with 72.6% of those polled having experienced it in past year, broadly flat rom 2014.

However, fewer retailers in 2015 have experienced specific instances of return fraud. The survey found 75.8% experienced the return of merchandise purchased on fraudulent tender in 2015, down from 81.8% last year.

Sectors: Retail, Technology

BLOG

US trade updates out of date

Apparel and textile industry executives are among those being deprived of key trade and economic data amid the ongoing US government shutdown – at a time when trade tensions between the US and China m...

BLOG

2019 off to a positive start

Getting 2019 off to a positive start, it seems US apparel retailers saw some holiday cheer, with strong sales momentum that started during the back-to-school season carrying on to Christmas....

BLOG

UN sets new Fashion Industry Charter for Climate Action

43 leading fashion brands, retailers and suppliers – including Adidas, Burberry, Gap Inc, H&M Group, Inditex, Kering, Levi Strauss & Co, and PVH Corp – are backing the UN’s new Fashion Industry Charte...

ANALYSIS

Top stories this week on just-style...

Top stories on just-style this week were dominated by just-style's Outlook 2019 insights, with readers keen to see what 2019 has in store for the apparel industry. Also popular was news that Banglades...

BLOG

Decathlon's decade-long eco-labelling project

Global sporting goods giant Decathlon is nearing the finishing line on a decade-long project that will see all textile and footwear items labelled with their environmental impact by the end of next ye...

just-style homepage



Forgot your password?