Due to the rising use of weight-loss drugs, American apparel companies are experiencing more returns than ever, The Wall Street Journal reports.
Shoppers are buying the same clothing item in multiple sizes to return the bigger sizes later. The number of shoppers returning items has grown in the past three years, reaching a high of 14.6% in 2025.
This issue has caused a loss in profit for many retailers, especially online businesses. When returns are made, shipping labor and warehouse costs add up and returned items may have to be discounted if they are out of season.
A $1 billion retail company suffering from increased returns can see a $20 million slash in gross margins.
The Wall Street Journal has the full story. A subscription may be required.
