Low-Value Returns After the Holidays Threaten Retail Margins, Qlik Consumer Survey Reveals

New data highlights how consumers’ post-holiday return habits are reshaping retail logistics and creating opportunities for smarter strategies

Philadelphia, December 19, 2024Qlik®, a global leader in data integration, data quality, analytics, and artificial intelligence (AI), has unveiled the results of a survey exploring American shoppers’ post-holiday return habits. The findings shed light on a significant challenge for retailers: navigating a surge in returns that strains supply chains and impacts profitability, while balancing consumer expectations for seamless and cost-free processes.

The survey reveals key consumer behaviors during the peak return season, emphasizing both operational challenges and opportunities for retailers to adapt smarter strategies. Returns of low-value items are particularly prevalent, intensifying the burden on retail operations.

Key Findings from the Survey:

  • Consumers act quickly: 68% of shoppers return gifts within a week after the holidays.

  • In-store returns drive loyalty: 91% of consumers are more likely to shop online with retailers that offer in-store return options, like Amazon’s Whole Foods drop-off points.

  • Impulse buys add value: 20% of consumers typically spend more than the value of the item they return, presenting opportunities for brick-and-mortar stores housing e-commerce return points.

  • Shipping fees drive frustration: 54% of consumers cite shipping or restocking fees as their top frustration with returns, a figure that rises to 60% among high-income shoppers earning over $100,000 annually.

  • Low-value returns dominate: 55% of shoppers return items worth less than $100, while 87% report returning $500 or less in merchandise.

The January returns season underscores the urgent need for retailers to rethink their strategies. Handling post-holiday returns involves significant logistical and financial challenges, yet it also presents an opportunity to strengthen customer loyalty and uncover new revenue streams.

“The holiday season exposes a growing problem for retailers: a flood of low-value returns that hit hard once the celebrations are over,” said Mike Capone, CEO of Qlik. “With the right insights, retailers can turn their January returns from a costly headache into an opportunity to protect margins and manage resources more effectively. The returns flood won’t stop—but smarter, data-driven strategies can help retailers turn the tide.”

The survey findings point to the potential for predictive analytics and data-driven tools to help retailers optimize operations. From pinpointing peak return periods to identifying frequently returned items, these insights can empower businesses to manage resources more efficiently and plan for the January sales period.

Survey Methodology:

The Qlik Survey was conducted by Wakefield Research among 1,000 U.S. adults ages 18+, between December 11 and December 15, 2024, using an email invitation and online survey. Data was weighted to ensure accuracy.

About Qlik

Qlik converts complex data landscapes into actionable insights, driving strategic business outcomes. Serving over 40,000 global customers, our portfolio provides advanced, enterprise-grade AI/ML, data integration, and analytics. Our AI/ML tools, both practical and scalable, lead to better decisions, faster. We excel in data integration and governance, offering comprehensive solutions that work with diverse data sources. Intuitive analytics from Qlik uncover hidden patterns, empowering teams to address complex challenges and seize new opportunities. As strategic partners, our platform-agnostic technology and expertise make our customers more competitive.

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