New research finds half of retailers write off, destroy or discard between 6% and 40% of returned items.
The research from ReBound Returns and Advanced Supply Chain found that only 27% of retailers divert more than three-quarters of returns through circular routes, such as resale, reuse, refurbishment, donation or recycling.
The findings come as the EU’s Ecodesign for Sustainable Products Regulation (ESPR) introduces new requirements around the sustainability and circularity of products across their lifecycle.
Since 19 July 2026, the regulation includes a ban on the destruction of certain unsold consumer goods, including apparel, footwear and textile accessories, for large retailers and brands selling into the EU market.
For retailers and their returns teams, ReBound says the findings highlight the operational challenge of moving from circularity strategies to consistent recovery of returned stock.
The research found that many retailers already have processes in place to measure and improve the environmental performance of returns.
88% reported some level of environmental measurement across returns, while the same proportion have standardised or optimised efforts to improve the sustainability of returned items through resale, reuse, refurbishment and recycling.
However, this is not consistently translating into high levels of diversion from disposal. 44% of retailers divert half or less of their returned stock through circular routes, while only 27% divert more than three-quarters.
Based on the survey-average write-off rate (11.7%), a retailer processing 100,000 returns a year could see around 11,700 items generate no value at all.
At an average value of £106 / €124 per returned item, this would represent approximately £1.24m / €1.45m in lost value from write-offs alone.
Commenting on the research, Inge Bujakiewicz-Baars, Head of Sustainability at ReBound Returns, said: “While retailers are using recycling as one of their circular routes, under ESPR, recycling is actually classified as a form of destruction alongside landfill and energy recovery.”
“That places greater emphasis on higher-value circular routes such as resale, reuse, repair and donation.”
The findings form part of the Circularity Index research into how retailers are managing the environmental and commercial value of returned products as circularity becomes a greater operational and regulatory priority.
