Retail fraud called 'wardrobing' increases in the summer due to higher return rates, impacting retailers.

From CNBC: 2024-08-07 15:40:05

Retail fraud known as “wardrobing” surges in the summer as shoppers buy expensive items, wear them with tags, then return for refunds. Return rates spike by 2-3 times, with swimwear accounting for 5-15% of returns. Retailers are strategizing to combat costs and waste caused by wardrobing, using AI software like Optoro’s to manage returns efficiently. Strategies involve reducing return time, eliminating free returns, and quickly restocking products. AI software can reduce touches on returned products by 50%, improving recovery by 5-45% for retailers.



Read more at CNBC: ‘Wardrobing’ retail fraud soars in the summer