The fast-fashion retailer PrettyLittleThing (PLT) has stirred considerable controversy by deactivating the accounts of numerous customers over excessive return activities. The decision to clamp down on serial returners arrives amid increasing cost pressures on retailers to manage returns effectively while maintaining profitability.
The Boohoo Group, which includes PLT, thrived during the pandemic but now faces heightened competition from ultra-fast fashion brands like Shein and escalating customer budget constraints due to the cost-of-living crisis. The rate of returns normalizing post-pandemic poses additional operational hurdles.
The recent account deactivations come on the heels of PLT's decision to introduce a £1.99 fee for returns, including those for members of its "Royalty" service. This change aligns PLT with several high-street giants such as Zara and Uniqlo, which had already implemented charges for online returns. Retail expert, Jeanel Alvarado says these measures are necessary for retailers facing significant cost pressures, as managing returns incurs substantial labor and financial costs.
PLT's customers have taken to social media platforms to voice their frustration and disappointment, claiming that they had not excessively returned items as accused. Some customers, like 24-year-old pensions administrator Becca Unsworth from Preston, described being "appalled" after receiving an email notifying her about her account suspension. Unsworth, a loyal customer for seven years, mentioned that her returns were often due to faulty products or inconsistencies in sizing, a recurring issue many customers echoed online.
To mitigate these burdens, some brands like PLT rival OhPolly have introduced variable return fees depending on how much of the order is returned. This model reflects a broader industry trend aimed at discouraging serial returns without mandating complete bans on return activities.
The backlash against PLT’s return policies highlights growing discontent among consumers who feel penalized for flaws inherent in the fast-fashion model. Customers such as Sophie Smith highlighted issues with the quality and sizing of PLT's clothing, suggesting that superior product consistency could reduce return rates.
Additionally, PLT’s labor-intensive processing of returns, often exacerbated by poor packaging from consumers, adds layers of complexity and cost that the company appears unprepared to bear without passing the burden onto customers. This approach, while fiscally strategic, risks alienating a loyal customer base already disillusioned by the retailer’s stringent new policies.
Moreover, ethical concerns continue to shadow brands like PLT. Research has identified PLT as having inadequate environmental practices, poor labor conditions, and limited supply chain transparency, leading to criticism from ethical consumer watchdogs.
PrettyLittleThing’s contentious move to ban customers over too many returns reflects a significant shift in e-commerce policies, prompted by rising operational costs and the need to maintain profitability. While the company attempts to curb financial losses from excessive returns, it faces mounting criticism from customers who feel unfairly targeted.
