Several customers who are rapidly shedding pounds are buying multiple sizes and returning the ones that don’t fit
US apparel retailers are facing a massive profit threat as the soaring use of GLP-1 weightloss drugs is driving a surge in clothing returns.
Several customers who are rapidly shedding pounds are buying multiple sizes and returning the ones that don’t fit.
Budget suit retailer FlexSuits reported a 50% increase in returns over the past year. At June Adel, the overall return rate remained steady at 12%, but at least 60% of returns are now attributed to weight loss or items being too large, up from 30%–40% a year earlier.
Returns management firm Narvar analyzed data from 38 retailers and found that apparel exchanges involving shoppers sizing down reached 14.6% in 2025, a record high.
According to Impact Analytics, a 5- to 10-percentage-point increase in returns for a $1 billion company with a typical 20% return rate can slash gross margins by $20 million.
To offset the cost of accepting returns, some businesses, like The Dress Outlet, are doubling restocking fees to 20% of the purchase price.
The return rate is particularly severe in medium, large, and extra-large items.