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Christmas revenues are at an all-time high after the Royal Mail strikes resulting in many gifts arriving too late to give on the big day.
Nearly 40 percent more packages were returned between Christmas and New Year’s this year than last year, according to figures from ReBound, which processes millions of returns each year from retailers including River Island and John Lewis.
Retailers have been dealing with the fallout from postal strikes for the past month, said Laura Jarrett of ReBound, meaning many online orders arrived too late to be served to loved ones on Dec. 25. Postal workers took part in an industrial strike on December 9, 11 and 14. and 15, 23 and 24, which resulted in widespread upset.
“Strikes definitely contributed to the increase,” Garrett said. “Despite the strike being widely publicized by Royal Mail, there will be some people who have left their Christmas shopping until the last minute and ended up with gifts arriving too late.”
Millions of letters and packages reportedly accumulated during the strikes, with union sources telling the Telegraph that rats and foxes were found chewing on Christmas shipments outside the warehouse.
Royal Mail did not respond to the image of a fox atop mailbags at the time, but said the backlog was moving “very quickly through the center and into the next stage in their journey”.
In an effort to avoid disappointing customers, retailers have warned shoppers in the run-up to Christmas that they must come into stores if they want to ensure they get gifts in time.
Waterstones offered last days Christmas deliveries, while others such as Entertainer had to cancel next day deliveries as 100,000 Royal Mail workers staged a series of strikes.
ReBound said growing concerns about household finances likely contributed to the sharp increase in returns.
Ms Garrett said: “The cost of living crisis will affect some return decisions. Previously, some might have kept a gift they didn’t really want, but now with finances tighter than ever, this will have an impact on return gift decisions.
The pressure on budgets will also affect the urgent need to return products. While customers may previously have waited a few days for a return, the need for a refund has prompted some to take action.”
Shoppers wanting to return items face steep costs, with more and more retailers charging fees to return packages.
Moss Bros chief executive Brian Brake told the Telegraph late last month that the suit retailer had decided to charge a fee for some returns and that Mountain Warehouse had started charging £2 for returns for orders made after October 29, which would “It reflects the increasing cost of collecting and processing these returns.”
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