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Speaker 1: Now it looks like online shopping is and for a

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Speaker 1: bit of a shake up, a UK retailer Asos is

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Speaker 1: going to start charging UK shops about four pounds to

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Speaker 1: return items unless they keep forty pounds worth of their order,

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Speaker 1: and in New Zealand returns will cost us about nine

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Speaker 1: bucks New Zealand dollars. It's one of a number of

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Speaker 1: changes being brought in by a big online retailers. Boohoo

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Speaker 1: recently introduced a freight charge into New Zealand, and Nike

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Speaker 1: has pulled out of shipping here altogether. First Retail Group

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Speaker 1: Managing director Chris Wilkinson.

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Speaker 2: Is with us.

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Speaker 1: Now, Hey Chris, hey, how are you heav I'm very

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Speaker 1: well thank you know? Is this because people are taking

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Speaker 1: the mickey with what they're ordering and how much they're ordering.

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Speaker 2: There's been there, it has been that situation in the UK.

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Speaker 2: Around six percent of asos as customers make up a

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Speaker 2: very large portion of those returns.

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Speaker 1: What are people doing? Are they? I mean, is it

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Speaker 1: true that you've got some people who are buying clothing,

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Speaker 1: trying it on, wearing it out and then sending it back.

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Speaker 2: Absolutely, it is a bit of that. You'll if anyone

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Speaker 2: follows vloggers. You'll often set people promoting the halls that

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Speaker 2: they've done trying the stuff on, showing it online and

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Speaker 2: then sending it back.

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Speaker 1: How prevalent do you think that is?

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Speaker 2: Well, it is growing in prevalence, and the ab abuses

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Speaker 2: are certainly causing most of those retailers in the UK

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Speaker 2: big challenges.

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Speaker 1: I imagine this is quite a pricey part of their business,

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Speaker 1: right because it'll be quite labor intens of having to

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Speaker 1: unpack all the staff, make sure it's all there, presumably

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Speaker 1: refresh it or whatever, and then put it back out.

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Speaker 2: We've just come back from working in the UK. It's

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Speaker 2: an industry in itself, these returns. There are factories dedicated

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Speaker 2: to taking the product back, checking it, refreshing it and

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Speaker 2: then either putting it back into stock or in some

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Speaker 2: cases it has to go to land on.

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Speaker 1: Chris, is it going to impact how we buy from

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Speaker 1: these places? Because I'll be honest with you, I really

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Speaker 1: struggle buying stuff online because of the uncertainty of sizing

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Speaker 1: and the quality of the stuff, and so knowing that

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Speaker 1: you can send it back without any added cost is

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Speaker 1: kind of reassuring.

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Speaker 2: It's true. It's interesting because these retailers are encouraging Obviously

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Speaker 2: Asos doesn't have stores, but for the other big retailers,

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Speaker 2: they are encouraging people to bring those returns back into

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Speaker 2: store and we're seeing store traffic is starting to rise

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Speaker 2: back in the UK.

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Speaker 1: Interesting, that's a very smart move. Okay, So is this

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Speaker 1: just something we need to get used to? This is

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Speaker 1: just the way it's going to be from here on in.

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Speaker 2: I think so people will just have to realize this

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Speaker 2: is going to be the way of the future. All

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Speaker 2: the big retailers are doing it.

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Speaker 1: Yeah, Chris, thank you. Always got to talk to you. Appreciated.

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Speaker 1: Chris Wilkinson, First Retail Group Managing Director.

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Speaker 2: For more from Heather Duplessy Allen Drive, listen live to

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