According to data from SAP Emarsys Customer Engagement, one in five Gen Zers are expected to return their Valentine's Day gifts in secret. The data suggests that Gen Z are more than twice as likely to return Valentine’s Day gifts as Gen X, and nine times more likely than Baby Boomers. Men are more likely to return gifts without telling their partners compared to women.

The data also reveals that 48% of Gen Zers regift their unwanted items to others. Almost half of Gen Zers (49%) don’t bother to return items if they cost less than $10. The rate of returns is rising, with 70% of Australians returning items over the past 12 months.

SAP Emarsys suggests that retailers invest in providing more personal recommendations to reduce the rate of returns. The data was collected from a survey of over 2,000 consumers across Australia. Emarsys, an SAP company, is an omnichannel customer engagement platform that partners with more than 1,500 companies globally.

Will Wilson, Regional VP Sales, APJ at SAP Emarsys, commented on the findings, "Every year consumers are overwhelmed with the pressure of getting the perfect Valentine’s Day present. This is where it is essential brands get it right in the first place by leveraging AI to make personalised offers to customers, based on previous shopping behaviour. The result? Retailers will see real revenue from reduced returns as well as an opportunity to elevate customer experience and strengthen loyalty. Meanwhile, shoppers are saved the embarrassment of trying to return a heartfelt gift."

The data highlights the importance of personalisation in retail, particularly for younger demographics like Gen Z who are more likely to return or regift items. By leveraging AI and personalisation, retailers can potentially reduce the rate of returns and increase customer loyalty.