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Boohoo to start charging £1.99 returns fee to offset shipping costs

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On this episode of Talking Shop I’m joined by Alain Bejjani—former Group CEO of Middle East retail giant Majid Al Futtaim, and author of the definitive new book, NEXT: Leading Through the New Realities. Drawing on his childhood in war-torn Beirut, and his experience steering a $9.5bn dollar retail and lifestyle empire through a global pandemic, Alain brings an unmatched perspective on leadership under pressure. Today, we break down his crisis survival playbook for retailers operating in distress. We discuss why resilience must always outpace efficiency, the four assets a brand must protect at all costs, and how to turn macro-turmoil into a long-term direction that scales.

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Online fashion retailer Boohoo has become the latest retailer to start charging shoppers for returns as it looks to offset increased shipping costs.

First reported by Retail Week, the move, which came into effect from 4 July, will see customers charged £1.99 to return goods with the sum taken out of their refund.

It comes as Boohoo revealed it has seen its rate of returns increase to levels much higher than before the Covid-19 pandemic.

A Boohoo spokesperson told the outlet: “As the cost of shipping has increased, we’ve had to look at where we can adapt without compromising what our customers love most, the convenience of shopping with us and the great value that our brands offer.

“This has meant that we will be applying a charge of £1.99 to returns so that we can continue to offer great prices and products and do this in a more sustainable way.”

Earlier this year the retailer revealed its profit before tax sunk 94% to £7.8m in 2022, compared to £124.7m in 2021

The group said this is due to “lower growth” than anticipated and a “significant” increase in logistics costs.

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