Misguided and a clue to its problems

[Spartacus]

If you've been a dedicated follower of fashion you can't have missed the collapse of Missguided recently

For those who don't know it is / was an online fashion house selling clothes.

The BBC has a story on it today saying that any customer who is owed refunds or money possibly won't be getting it back from the firm.

However, in the story there is a clue to the problems that face online clothing retailers at the moment

It talks about one lady who is quoted as saying

"I was looking for a dress for a friend's wedding so I naturally ordered lots of options to try on," and then goes on to saying she returned 7 items.

Perfectly reasonable you might say, but then let's look from the companies point.

They would need to process the seven items, check for damage or worst still unexpected stains, remove any items that couldn't be resold then either repackage as new or sell as returns the items (all taking time and money) then on top they need to refund the customer for the items they have returned causing uncertainty in the companies cash flow and profits.

A customer buying 8 items for say ?200 then returning 7 and expecting to pay say ?25 for the one item they keep is a massive issue for the company (especially as the customer has a good window for returns)

Even more of an issue is if an item is returned at the end of the window and by time its put back in stock the season for its over.

Who's fault is it ?

From a customers point not theirs as they need to try on different sizes or options

From the businesses point, not theirs as customers are doing higher returns then expected.

So what's the solution ?

The only real solution here is for customers to return to the high street, try clothes on in the store where they can be quickly inspected and put back out on the racks if the customer says no

Or

A click and collect hybrid, where you order clothes to be delivered to a local small retail space, try them on and reject the ones you don't want there and then but pay for the ones you take.

Unfortunately we aren't all exactly the same sizes, shape or complexion so buying over the Internet will always be difficult whereas a physical store, whilst having other costs associated with it, may well be the win win solution for everyone.

Any thoughts or comments ?

BBC News - Missguided shoppers will not get refunds for returns

https://www.bbc.co.uk/news/business-61784199

[diable rouge]

Were customers charged for returns?...

[Spartacus]

diable rouge Wrote:

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> Were customers charged for returns?...

No idea, they obviously had to pay up front to get items but no idea of there was a return fee

[Waseley]

Misread this as misguided and clueless, which as I was watching the Foreign Secretary on BBC news was totally appropriate

[Alan Medic]

"It talks about one lady who is quoted as saying

"I was looking for a dress for a friend's wedding so I naturally ordered lots of options to try on," and then goes on to saying she returned 7 items.

Perfectly reasonable you might say, but then let's look from the companies point"

I don't think this perfectly reasonable at all. Perfectly stupid. From the retailer for the reasons you outlined but what customer would want to return 7 out of 8 items and the hassle that brings?

Your back to the High Street solution makes sense.

[Spartacus]

Alan, I think younger shoppers (16 to 30s) tend to buy lots to try them on then return what they don't want as returns are easy for them but obviously not for the retailer

Asos are also reporting higher then expected returns at the moment.

BBC News - Asos hit as rising prices see shoppers return more

https://www.bbc.co.uk/news/business-61822539

[DuncanW]

Agreed that it's a real issue.

Many/most of these retailers offer free delivery and returns. That's a big part of how they took so much business away from the high street. Time will tell how good a model that really is; the demise of one retailer might be an indicator of something, but probably not conclusive proof.

Don't forget these retailers don't have the costs of running a branch operation and all that entails: Rent, rates, utilities, fit out, staffing costs plus the costs with making sure the right products are in stock at every branch and the reality that in doing so you're going to get left with a lot that people didn't buy, which you then need to discount or maybe not sell at all.

Online retailers just don't have all those costs, so they can stomach some level of delivery and return cost.

[diable rouge]

I take your points Duncan but free returns and the inherent admin costs that brings sounds like an unsustainable business model to me, especially if people are buying in such large quantities, knowing they will return many of the items.

Keep deliveries free to maintain the incentive to buy, but charge for returns. I think Ted Baker charges a nominal amount for returns (?3?), sounds like a sensible thing to do to deter multi-purchasing...

[Sue]

I always thought it was a very strange and off-putting name, but I'm hardly its target market.

The Mixed Blessings bakery on the Walworth Road has also always struck me as an odd name to choose.

Just because something has a vaguely double meaning doesn't make it good if the other meaning is somewhat negative!

[diable rouge]

I never got the name No Flies estate agents. I know the emphasis is on No Lies, but still seemed an odd name to choose.

Just checked, they're still in business, so what do I know...:)

[Spartacus]

Almost as scary as "dead happy" life insurance 🤔

[Alan Medic]

Are you sure No Flies = No Lies, dr? My first thought was that it must relate to the expression 'There's no flies on me/him/her'. Often used within my family.

[diable rouge]

I thought the same as you initially Meds, but I had a chat on here with one of the partners and he said it was about trying to dispel the public's often held view that estate agents are liars etc.

It's highlighted in their logo, although to my eyes the F stands out more than the No Lies :)...https://no-flies.co.uK