One in five Gen Zers will swap heartfelt gestures for cash this Valentine’s Day, returning gifts from their loved ones in secret. That’s according to the latest Valentine’s Day returns data from SAP Emarsys Customer Engagement.  

Researching more than 2,000 consumers across the UK, SAP Emarsys found that Gen Z (those aged 16-24) are more than twice as likely to return Valentine’s Day gifts as Gen X (aged 45-54); and six times as likely as Baby Boomers (those aged 55 or over). Men are also more likely to return gifts without telling their partners than women. 

And it’s not just Valentine’s Day. Nearly a quarter of Gen Zers have also secretly returned the gifts they received at Christmas. However, not every gift goes back to the store. According to the data, nearly half of Gen Zers (43%) don’t bother to return items if they cost less than £10, while 46% regift their unwanted items to others. 

SAP Emarsys’ data comes at a time when the rate of returns is rising, with 7 in 10 Brits (71%) returning items over the past 12 months. According to the latest estimates, these returns cost UK retailers a massive £60bn a year! 

To protect against losing money from processing returns, SAP Emarsys suggests retailers invest in providing more personal recommendations, helping shoppers — and gifters — get it right first time. 

Sara Richter, CMO at SAP Emarsys, said: “Buying the perfect Valentine’s Day present isn’t easy, and retailers need to do everything possible to help shoppers get it right.

“Personalisation is essential, and retailers can leverage AI to recommend gift ideas that help shoppers find the perfect gift for their loved ones. If retailers can help shoppers get it right first time, they’ll not only see revenue gains, but also save time and effort on costly returns. Reducing returns is also an opportunity to elevate customer experience and strengthen loyalty, saving shoppers the embarrassment of returning a heartfelt gift.”

Understanding customer returns behaviour is imperative. Gen Z customers may purchase many items, but as the research shows, a significant portion of those items are returned, which tells a different story. AI driven personalisation enables retailers to identify these patterns and make data-driven decisions to foster true loyalty.