Fashion brands are balancing ‘Returnuary’ losses with resale revenue

January has long been a pain point for retailers. Known as “Returnuary” in the industry, the month sees a surge in product returns, particularly items from holiday sales. This year, brands are doubling down on resale strategies to mitigate losses and extend the lifecycle of returned goods.

According to the National Retail Federation’s December report, returns are projected to account for 17% of all merchandise sales in 2025, amounting to $890 billion worth of merchandise — a significant increase from 2023’s 15% rate and $743 billion. 

And with a new sustainability-averse administration under way under President Trump, resale could prove one of the only sustainable fashion practices that isn’t affected.

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