In the accelerated world of omnichannel shopping, the financial impact of returns can be unsustainable for apparel retailers. But if they can improve their returns management capabilities, they can add value to their bottom line and drive consumer experiences.
For apparel retailers, managing returns presents a complex set of operational challenges—from consumer expectations and reverse logistics to process ownership and data limitations—that need to be addressed to handle returns in a way that reduces their impact on inventory and enables them to better compete against online sellers. To explore these challenges and identify opportunities, McKinsey surveyed 14 top North American apparel retailers in 2020 and 2021 to ask about their returns economics, vital operational capabilities, and future priorities.
Dior’s returns policy allows for refunds or exchanges of most products within 30 days of purchase, assuming they are unused and in as-new condition. However, they restrict the number of businesses that customers can make and limit them to one per order.
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