Weight-loss drugs are creating a costly new problem for retailers: Clothing returns
Some retailers are responding with stricter return policies, higher restocking fees and expanded inventories of smaller sizes
Consumers shrinking faster than retailers can keep up
It used to be a law of nature that matter is neither created nor destroyed. But when it comes to American consumers, nature had better stand aside because all bets are off.
Take GLP-1, the booming weight-loss medication that has made the tonnage equivalent of a few million consumers disappear. It’s a bonanza for drug companies but a headache for retailers, who find themselves facing a growing wave of clothing returns.
Retailers say customers who are losing significant amounts of weight are increasingly ordering garments in multiple sizes, unsure which will fit. Many then return larger sizes or exchange items repeatedly as their bodies continue to change.
The trend is becoming particularly noticeable for online apparel sellers, where returns already represent one of the industry’s biggest profit drains.
“It’s becoming a real issue,” said Farnam Elyasof, founder of online suit retailer FlexSuits, in a Wall Street Journal report. Elyasof said returns have risen about 50% over the past year as more customers rapidly move through multiple clothing sizes.
A growing financial headache
Returns are expensive for retailers. Companies must pay for shipping, processing, inspection, restocking and warehousing. Returned merchandise may also miss peak selling seasons and ultimately be sold at a discount.
According to retail analytics firm Impact Analytics, a $1 billion retailer with a typical 20% return rate could see gross margins reduced by roughly $20 million if returns rise by just five to 10 percentage points.
Industry data suggest the sizing-down trend is accelerating. Narvar, which manages returns for dozens of retailers, found that the share of apparel exchanges involving customers moving to smaller sizes reached 14.6% in 2025, the highest level in at least three years.
The effect appears strongest in medium, large and extra-large apparel categories, where consumers often buy multiple sizes to account for ongoing weight loss.
The GLP-1 effect on wardrobes
Popular medications such as Zepbound, Wegovy and related GLP-1 drugs can produce dramatic weight reductions.
Clinical studies have shown many patients lose 15% to 25% or more of their body weight, often over a relatively short period. Consumers frequently replace wardrobes piece by piece as they slim down, beginning with jeans, bras and athleisure wear before moving to dresses, tops and formal clothing.
Retailers including Levi Strauss & Co., Costco Wholesale and Walmart have acknowledged they are studying how widespread weight-loss drug adoption could affect purchasing patterns, the Journal said.
Some analysts believe the phenomenon could reshape apparel demand much as remote work reshaped office fashion during the pandemic.
Retailers tighten policies
To offset rising costs, some merchants are taking a tougher stance on returns.
Online formalwear seller The Dress Outlet recently doubled its restocking fee to 20% of the purchase price for many items, with even higher fees for some designer gowns.
Other retailers are focusing on better sizing guidance, encouraging customers to review measurement charts before ordering.
Women’s apparel brand June Adel says it has increased purchases of smaller-size inventory while providing more detailed descriptions about whether garments run large or oversized.
The company reports that complaints about items being too large or no longer fitting because of weight loss now account for roughly 60% of returns, up sharply from 30% to 40% a year ago.
What this means for consumers
For shoppers, the trend could eventually translate into stricter return policies and higher prices.
Retailers have long absorbed the cost of generous return programs as a competitive necessity. But if return rates continue climbing, especially among online sellers, consumers may face more restocking fees, shorter return windows and tighter restrictions on free returns.
At the same time, retailers are likely to expand offerings in smaller sizes and improve fit technology, including AI-powered sizing tools designed to reduce costly trial-and-error purchases.
The result is another example of how GLP-1 drugs are reshaping consumer markets far beyond healthcare — from grocery purchases and restaurant spending to apparel sales and now the economics of product returns.