In this chapter, we consider how retailers can become more efficient by refining operations in the front office through customer returns, and in the back office through more robust and integrated planning. We also discuss an emerging core driver of value for retailers in our section on Big Data.
2.1 THE CUSTOMER RETURNS OPPORTUNITY
Recent estimates of the cost of customer returns to UK retailers are as high as £10 billion annually, with up to 40% of purchases returned in some product categories (McGulloch, 2012). With the growth of multichannel retail, the volume of returns that retailers can expect to handle is only likely to increase. How well a retailer deals with returns not only makes or ...