Markus Andrews

Returns in 2024 are expected to be about 17% of all goods sold, totaling $890 billion, according to a new report by the National Retail Federation and return management company Happy Returns. That’s up from 15% in 2023.
The growing amount of returned merchandise presents major challenges for retailers, not to mention the environmental cost.

A driver for an independent contractor to FedEx delivers packages on Cyber Monday in New York, US, on Monday, Nov. 27, 2023.
Stephanie Keith | Bloomberg | Getty Images

Holiday shopping is expected to reach record levels this year. But a growing share of those purchases will be sent back.
Returns in 2024 are expected to amount to 17% of all merchandise sales, totaling $890 billion in returned goods, according to a new report by the National Retail Federation and return management company Happy Returns. That’s up from a return rate of about 15% of total U.S. retail sales, or $743 billion in returned goods, in 2023.

Even though returns happen throughout the year, they are much more prevalent during the holiday season, the NRF also found. As shopping reaches a peak in the weeks ahead, retailers expect their return rate for the holidays to be 17% higher, on average, than the annual rate.
“Ideally, I hope there is a world in which you can reduce the percent of returns,” said Amena Ali, CEO of returns solution company Optoro, but “the problem is not going to abate any time soon.”
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Why returns are a big problem

With the explosion of online shopping during and since the pandemic, customers got increasingly comfortable with their buying and returning habits and more shoppers began ordering products they never intended to keep.
Nearly two-thirds of consumers now buy multiple sizes or colors, some of which they then send back, a practice known as “bracketing,” according to Happy Returns.

Even more — 69% — of shoppers admit to “wardrobing,” or buying an item for a specific event and returning it afterward, a separate report by Optoro found. That’s a 39% increase from 2023.
Largely because of these types of behaviors, 46% of consumers said they are returning goods multiple times a month — a 29% jump from last year, according to Optoro.
All of that back-and-forth comes at a hefty price.
“With behaviors like bracketing and rising return rates putting strain on traditional systems, retailers need to rethink reverse logistics,” David Sobie, Happy Returns’ co-founder and CEO, said in a statement.

What happens to your returns

Processing a return costs retailers an average of 30% of an item’s original price, Optoro found. But returns aren’t just a problem for retailers’ bottom line.
Often returns do not end up back on the shelf, and that also causes issues for retailers struggling to enhance sustainability, according to Spencer Kieboom, founder and CEO of Pollen Returns, a return management company. 
Sending products back to be repackaged, restocked and resold — sometimes overseas — generates even more carbon emissions, assuming they can be put back in circulation.
In some cases, returned goods are sent straight to landfills, and only 54% of all packaging was recycled in 2018, the most recent data available, according to the U.S. Environmental Protection Agency.
Returns in 2023 created 8.4 billion pounds of landfill waste, according to Optoro.
That presents a major challenge for retailers, not only in terms of the lost revenue, but also in terms of the environmental impact of managing those returns, said Rachel Delacour, co-founder and CEO of Sweep, a sustainability data management firm. “At the end of the day, being sustainable is a business strategy.”

To that end, companies are doing what they can to keep returns in check.
In 2023, 81% of U.S. retailers rolled out stricter return policies, including shortening the return window and charging a return or restocking fee, according to another report from Happy Returns.
While restocking fees and shipping charges may help curb the amount of inventory that is sent back, retailers also said that improving the returns experience was a key goal for 2025.
Now 33% of retailers, including Amazon and Target, are allowing their customers to simply “keep it,” offering a refund without taking the product back.

How return policies shape shopping habits

Increasingly, return policies and expectations are an important predictor of consumer behavior, according to Happy Returns’ Sobie, particularly for Generation Z and millennials.
“Return policies are no longer just a post-purchase consideration — they’re shaping how younger generations shop from the start,” Sobie said.
Three-quarters, or 76%, of shoppers consider free returns a key factor in deciding where to spend their money, and 67% say a negative return experience would discourage them from shopping with a retailer again, the NRF found.
A survey of 1,500 adults by GoDaddy found that 77% of shoppers check the return policy before making a purchase.
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Healthcare Realty Trust building in in Nashville, Tennessee.
Source: Google Maps

Company: Healthcare Realty Trust (HR)

Business: Healthcare Realty Trust is a self-managed and self-administered real estate investment trust that owns and operates medical outpatient buildings primarily located around hospital campuses. The company selectively grows its portfolio through property acquisition and development. Its portfolio includes nearly 700 properties totaling over 40 million square feet, concentrated in 15 growth markets. The company’s properties are in high-growth markets with a broad tenant mix that includes over 30 physician specialties.
Stock Market Value: $6.38B ($17.99 per share)

Stock chart icon

Healthcare Realty Trust’s shares in 2024

Activist: Starboard Value

Ownership: 5.90%
Average Cost: $17.14
Activist Commentary: Starboard is a very successful activist investor and has extensive experience helping companies focus on operational efficiency and margin improvement. Starboard has taken a total of 155 activist campaigns in its history and has an average return of 23.37% versus 14.29% for the Russell 2000 over the same period.

What’s happening

On Nov. 26, Starboard filed a 13D with the U.S. Securities and Exchange Commission, disclosing a 5.90% position in Healthcare Realty Trust.

Behind the scenes

Healthcare Realty Trust (HR) is a real estate investment trust that owns and operates medical outpatient buildings located primarily on or around hospital campuses. On Feb. 28, 2022, the company entered into an agreement to merge with Healthcare Trust of America (HTA) in an approximately $18 billion deal.  Despite HR shareholder strong approval with 92% of the votes cast, the merger was somewhat dilutive to HR shareholders as the deal implied a sub-5% cap rate, whereas HR traded above that at the time.

But management had the opportunity to show the wisdom in the acquisition by integrating the two businesses, recognizing synergies and cutting costs and bringing down the cap rate to below the 4.85% blended cap rate implied in the merger. That did not happen. Just over two years later, property operating expenses have risen from 31% to 37%, several percentage points above peers. Further, funds from operations (“FFO”) yield is 9%, far higher than its peers in the 5% to 6% range. Finally, the cap rate is at 7%, and the stock is down over 15%, versus an increase of 33% for the Russell 2000. About three weeks ago, the company’s long-time CEO Todd Meredith, who served as president and CEO for eight years and spent a total of 23 years with Healthcare Realty, stepped down.
Help is on the way, in the form of Starboard Value (although, I am not sure if that is how the company views it). Nevertheless, Healthcare Realty is now at a critical inflection point, and there are two paths to unlocking value here. The first is to remain a standalone company, which would require the hiring of a new CEO, the most important function of a corporate board. However, after entering into a questionable acquisition and overseeing an underperforming management team, stockholders would be well within their rights to question whether this is the right board to embark on this crucial search. So, going down this path in a way that creates value for shareholders would mean a refreshment of the board. We would expect that Starboard would want at least one of those seats to assist in this decision. From there, the company is in great need of an operational turnaround to address its bloated cost structure to bring Healthcare Realty more in line with peers, something else that Starboard has shown to have an expertise in from a board level. This would be a long and uncertain path, but definitely doable with the right board and management team.
That brings us to the second, shorter and more certain path: a sale of Healthcare Realty. If there are two things that put a company in pseudo-play, it is the arrival of an activist and the departure of a CEO. This company has both of those. There are several potential strategic acquirers for this company – specifically larger companies whose cost of capital and cap rates are lower, such as Welltower, Healthpeak and Ventas, whose cap rates are approximately 5% to 5.5%. This is not just an academic hypothesis. Interest from strategic buyers has already been demonstrated: About a month after Healthcare Realty and Healthcare Trust of America agreed to merge, Welltower offered to acquire Healthcare Realty for $31.75 a share in a nearly $5 billion all-cash bid (the company ended Friday’s session at $17.99 per share). It is interesting to note that when the Healthcare Trust of America merger was approved, activist fund Land and Buildings unsuccessfully opposed the transaction in favor of the Welltower offer.
Boards and management teams generally cower at the thought of an activist. But this board should welcome Starboard and not only because of its reputation as a constructive activist who works well with management to create value, but because Healthcare Realty is at an inflection point where the board needs to decide whether it is going to do a full search for a new long-term CEO or explore a sale. In either case, it is helpful to have a shareholder representative like Starboard involved. Starboard is a top operational and corporate governance activist. If the first path – a search for a new CEO – is the right path for shareholders, there is nobody better to work with the board in implementing that plan. While the firm is the furthest thing from a “sell the company” activist, it’s a fiduciary and an economic animal that will do whatever is in the best interest of shareholders. Further, if there is an opportunity to sell the company, they would weigh that against a plan to find a new CEO. This is very similar to what the firm did in one of its prior activist campaigns. In 2018, a similar dual-path situation unfolded at Forest City Realty Trust. Initially, Starboard went down the path of long-term value creation – refreshing the board and focusing on improving the company’s cost structure. However, during this process, Brookfield Asset Management came into the picture with an offer to acquire Forest City Realty at $25.35 per share – a huge premium. This was an offer Starboard simply could not refuse, and the firm exited this situation up 47.27% compared to a 7.2% loss for the Russell 2000 over the same period. 
While we believe management should welcome Starboard at this crucial juncture, we have been surprised by management teams before. Starboard has not yet officially nominated directors, and the firm has until Dec. 10 to do so. That is not a long time to agree on a settlement, and we could see Starboard nominating a slate if only to preserve their options going forward.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. Healthcare Realty Trust is owned in the fund. More

The S&P 500 is up nearly 30% this year so far.
But it’s important for investors to temper their expectations and to remember that years like this one are rare, financial advisors cautioned.

Traders react after the closing bell on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 13, 2023. 
Brendan Mcdermid | Reuters

However you feel about the world these days, you’re likely happy with the stock market.
The S&P 500 is up nearly 30% this year so far.

But it’s important for investors to temper their expectations and to remember that years like this one are rare, said Cathy Curtis, a certified financial planner and the founder and CEO of Curtis Financial Planning in Oakland, California.
“Investors should know that the stock market has an average annualized return of over 10% for decades,” said Curtis, a member of CNBC’s Advisor Council.
“The past year has seen growth way over this amount and it would be highly unusual for that to continue for a multi-year timeframe,” she added.
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Indeed, the S&P 500’s return has been larger than 2024’s in only 17 out of the last 74 years, Morningstar Direct found. For example, in 1954, the S&P 500 swelled more than 52%. It returned around 31% in 1989.

(The financial services firm looked at how many years, from 1950, the index increased by more than 29.24%, its exact return so far for 2024, as of the end of Wednesday.)
Multiple years in a row of significant gains are even rarer.
The S&P 500 rose more than 24% in 2023, and if the index rises this year more than 20%, that would be only the third time that there have been back-to-back gains of that size in the past century, according to Deutsche Bank.

That market returns are unlikely to be as high going forward doesn’t mean you should sell your stocks, Curtis added.
“The best way to benefit from the annualized return is to stay in the market,” she said.
Ups and downs are the signs of a healthy market — and you’ll benefit if you stay invested.
Years like this one can help to make up for periods where the market is deep in the red. The S&P 500 was down over 36% in 2008. In 2022, it dropped over 18%.
“We have ‘recency bias’ so there is a tendency to expect the recent performance to continue,” said Allan Roth, a CFP and accountant at Wealth Logic, based in Colorado Springs, Colorado.
“But reversion to the mean is statistically far more likely,” Roth said. More

President-elect Donald Trump will nominate former Missouri congressman Billy Long to lead the IRS.
The announcement signals plans to fire the current IRS Commissioner Daniel Werfel before his term ends in 2027, which is permitted by law.
Responses have been mixed in Washington and the tax community.

Former Representative Billy Long, a Republican from Missouri, speaks during a campaign event for former US President Donald Trump at Simpson College in Indianola, Iowa, US, on Sunday, Jan. 14, 2024. 
Al Drago | Bloomberg | Getty Images

President-elect Donald Trump has tapped former Missouri congressman Billy Long to lead the IRS, which has triggered mixed reactions from Washington and the tax community.
If confirmed, Long could mean a shift for the agency, which has embarked on a multibillion-dollar revamp, including upgrades to customer service, technology and a free filing program. The agency has also expanded enforcement to collect unpaid taxes from wealthy individuals, large corporations and complex partnerships.

In 2022, Congress approved nearly $80 billion in IRS funding, which has been targeted by Republicans and could be at risk under the Trump administration.
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“Since leaving Congress, Billy has worked as a business and tax advisor, helping small businesses navigate the complexities of complying with the IRS Rules and Regulations,” Trump wrote in a Truth Social post on Wednesday. “Taxpayers and the wonderful employees of the IRS will love having Billy at the helm.”
Long worked as an auctioneer before serving six terms in the House of Representatives from 2011 to 2023.
Trump’s announcement signals plans to fire the current IRS Commissioner Daniel Werfel before his term ends in 2027, which is permitted by law. Werfel was appointed by President Joe Biden and has led the agency since 2023.

Long is ‘an unconventional pick’

Former IRS Commissioner Charles Rettig, who served under Trump and Biden from 2018 to 2022, said he doesn’t know Long, or whether Long and Werfel have discussed the transition.
If confirmed to succeed Werfel, “I’m hopeful Billy Long will quickly grasp the importance of the IRS and of the IRS employees to the overall success of our country,” he told CNBC in an email.
Mark Everson, who served as IRS commissioner from 2003 to 2007, described Long as “an unconventional pick,” compared with the experience profiles of previous IRS leaders. 
But Long’s years in Congress will provide “credibility up on the Hill with the people who matter, which will be important,” said Everson, who is currently vice chairman at Alliant, a management consulting company.
Long may be in a “better position than others to argue for the appropriate independence of the agency,” he said.

But some Democrats expressed concerns over Trump’s nominee.
“There are a lot of reasons why former Congressman Billy Long is a bizarre choice for this role,” Senate Finance Committee Chair Ron Wyden, D-Ore., said in a statement Wednesday.
“What’s most concerning is that Mr. Long left office and jumped into the scam-plagued industry involving the Employee Retention Tax Credit,” he said.
The employee retention credit was a pandemic-era tax break designed to support small businesses impacted by shutdowns. However, the IRS has denied billions in improper filings after companies pressured businesses to amend payroll returns to claim the tax break.
The Trump transition team didn’t respond to CNBC’s request for comment.
Sen. Mike Crapo, R-Idaho, lead Republican on the Senate Finance Committee, on Thursday voiced support for Long.
“The IRS has experienced myriad problems in recent years,” including privacy and security of taxpayer information, inefficiency and “an oversized emphasis” on enforcement, he said in a statement.
“Protecting taxpayers and addressing an ever-encroaching IRS is a top priority, and I look forward to learning more about Mr. Long’s vision for the agency,” Crapo said.

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The Pantone Color Institute named “Mocha Mousse” the new color of the year, describing it as “a warming, brown hue imbued with richness.”
Ever since the outfits Gwyneth Paltrow wore during her 2023 ski accident trial drew attention to “quiet luxury,” the trend has been hard to shake.
In 2025, that feeling of comfort and harmony in what Pantone calls “an ever-changing world” may be just what consumers are looking for.

PANTONE 17-1230 Mocha Mousse, Color of the Year 2025.
Courtesy: Pantone

“Mocha Mousse” was dubbed 2025’s color of the year by the Pantone Color Institute, which described the shade as “a warming, brown hue imbued with richness.”
Leatrice Eiseman, Pantone’s executive director, said the color is “sophisticated and lush, yet at the same time an unpretentious classic.”

Rooted in “quiet luxury,” the mellow hue “extends our perceptions of the browns from being humble and grounded to embrace aspirational and luxe,” she said in a statement.
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The quiet luxury trend, marked by such muted tones, first caught on in a big way after the outfits Gwyneth Paltrow wore during her 2023 ski accident trial drew attention, but it has stood the test of time.
The trend hit on a formula that works and is easily replicated with neutral colors or completely monochromatic looks, according to Thomaï Serdari, professor of marketing and director of the fashion and luxury program at New York University’s Stern School of Business.

Actress Gwyneth Paltrow enters the courtroom for her trial in Park City, Utah, March 24, 2023.
Rick Bowmer | Getty Images

‘Inherent richness’ and ‘comforting warmth’

“I am not surprised at all about the staying power of quiet luxury as it has given consumers a new pathway to identifying new neutrals that work with a variety of lifestyles,” Serdari said.

It is also fitting, heading into a new year with a new administration, that the color of the moment is seemingly benign, she added.
“If ‘Mocha Mousse’ could express feelings, these would be cautiousness, safety and a permanent state of suspense,” she said.
Feeling comfort and harmony in “an ever-changing world” and indulging in “me moments,” as Pantone says, may be just what consumers are looking for.
Mocha Mousse’s “inherent richness and sensorial and comforting warmth extends further into our desire for comfort,” Laurie Pressman, vice president of the Pantone Color Institute, also said in a statement.

Ellyn Briggs, a brands analyst at Morning Consult, forecasts a heightened “self-care” prioritization among shoppers in 2025.
“The mood right now is, overwhelmingly, fatigue,” said Briggs. In the pandemic years, the idea of self-care was closely tied to physical health and “curating your own space” during the lockdown, she said.
Next year, self-care will come in the form of connecting with others and be more “mental-health focused,” Briggs said.
“A lot of women, especially, are feeling disconcerted with the outcome of the election,” she said. “As women drive so much consumption trends, whether they’re online or offline, brands will definitely want to have to speak to that feeling.” More

Helped by consistent savings efforts and market gains, average retirement account balances reached fresh highs in the third quarter, according to Fidelity, the largest 401(k) plan provider in the U.S.
The number of 401(k) and IRA millionaires also hit all-time highs and, for the first time, millennials joined the group.

As the markets tested record highs, retirement savers reaped the benefits.
The average 401(k) plan balance ended the third quarter up 23% from a year earlier, at $132,300 — the highest average on record, according to a new report by Fidelity, the nation’s largest provider of 401(k) plans. The financial services firm handles more than 49 million retirement accounts altogether.

The average individual retirement account balance also rose 18% year over year to $129,200 in the third quarter of 2024.

Number of 401(k) millionaires jumps 9.5%

The number of 401(k) accounts with a balance of $1 million or more jumped to a record 497,000 as of Sept. 30, up 9.5% from the second quarter, according to Fidelity.
Similarly, the number of IRA-created millionaires increased by nearly 5% to a record 418,111.
“We are continuing to observe a dedication to saving for retirement, with contributions to these vehicles holding steady if not increasing,” Sharon Brovelli, president of workplace investing at Fidelity Investments, said in a statement.
Overall, the average 401(k) contribution rate, including employer and employee contributions, now stands at 14.1%, just below Fidelity’s suggested savings rate of 15%.

“These all-time highs are probably more attributable to market appreciation than anything else, but if contributions remain robust, that’s a good thing,” said Douglas Boneparth, a certified financial planner and president and founder of Bone Fide Wealth, a wealth management firm based in New York.
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Positive savings behaviors were key to improved outcomes, said Mike Shamrell, Fidelity’s vice president of thought leadership.
A great year for the major indexes also helped. The Nasdaq is up 31% year to date, while the S&P 500 notched a 27% gain and the Dow Jones Industrial Average rose more than 16%.
However, there’s no secret or “hot stock” which helped savers achieve millionaire status, Shamrell said. “Taking a long-term view of savings has shown benefits.”
Although most savers who have reached that threshold are at, or near, retirement age, “we did see some millennials crack into this group,” Shamrell said.

More retirement savers tap their 401(k)

Still, savers also tapped their accounts to free up cash. The percentage of workers who took a loan from their 401(k), including for hardship reasons, ticked up to 18.7%, from 17.6% a year earlier. 
“These are the types of numbers we would love to see go down to zero,” Shamrell said.
Federal law allows workers to borrow up to 50% of their account balance, or $50,000, whichever is less. However many financial experts similarly advise against tapping a 401(k) before exhausting all other alternatives since you’ll also be forfeiting the power of compound interest. 
“From a planner’s point of view, this is one of those areas of last resort,” said Boneparth, who is also a member of CNBC’s Advisor Council.
At the same time, many households are also leaning heavily on credit cards to make ends meet, other research shows.

Americans now owe a record $1.17 trillion on their cards, 8.1% higher than a year ago, according to the Federal Reserve Bank of New York.
During times of financial stress, it may make sense to borrow from a retirement account, rather than rely on such high-interest debt, according to Fidelity’s Shamrell.
Unlike credit card and other debt, savers who borrow from their 401(k) pay themselves back with interest. Interest rates are also generally much lower than those of credit cards, which are currently more than 20% today — near an all-time high.
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With just a little more than a month and a half left in office, President Joe Biden is under pressure to forgive more student loan debt.
Democratic lawmakers and consumer advocates are asking Biden to focus on defrauded student loan borrowers and those over age 50 in his final weeks in office.

President Joe Biden is joined by Education Secretary Miguel Cardona, left, as he announces new actions to protect borrowers after the Supreme Court struck down his student loan forgiveness plan, in the Roosevelt Room at the White House, Washington, D.C., June 30, 2023.
Chip Somodevilla | Getty Images News | Getty Images

With less than two months left in office, President Joe Biden is under pressure to forgive more student loan debt.
On Wednesday, dozens of Democratic lawmakers, including Sen. Bernie Sanders, I-Vt., and Ed Markey, D-Mass., wrote a letter to Education Secretary Miguel Cardona, urging the Department of Education to forgive the debt of borrowers who have applied for relief after being defrauded by their colleges.

Among its requests, the lawmakers asked the Education Department to process the pending borrower defense applications of an estimated 400,000 borrowers. Borrowers can be eligible for that discharge if their schools suddenly closed or they were cheated by their colleges.
“These borrowers completed an onerous application to demonstrate that they were victims of fraud, but the Department has yet to act,” the lawmakers wrote in their letter.
While Biden has been in office, the Education Department has forgiven more than $28 billion in student debt for more than 1.6 million borrowers who were misled by their schools or whose colleges closed.
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But the lawmakers said the Education Department needed to act for the remaining borrowers before it’s too late.

President-elect Donald Trump and Vice President-elect JD Vance are vocal critics of student loan forgiveness.
“Under the previous Trump Administration, borrowers’ applications were allowed to languish for years,” the lawmakers said in their letter. “If their application was reviewed, borrowers often were denied and granted no relief.”
Sen. Dick Durbin, D-Ill., echoed that message in a post on X on Monday.
“I’m on the Senate floor warning against predatory for-profit colleges and shining a light on borrower defense discharges through the Department of Education,” Durbin wrote. “We must continue to process these claims before the next administration comes into office.”
Trump himself once ran a for-profit school, called Trump University, in which attendees said they were duped with false advertising and high-pressure sales tactics. The school was open from 2005 to 2010. A federal court approved a $25 million settlement in 2018 with former Trump University students.
The Trump transition team did not immediately respond to CNBC’s request for comment.

Meanwhile, The Debt Collective, an organization that advocates for debt cancellation, launched its “Last 50 Days” campaign in November, to put pressure on the Biden administration to forgive the debt of student loan borrowers over the age of 50.
“Student debtors are going to get wrecked by the Trump administration, and that’s going to be the most painful for older Americans,” said Braxton Brewington, a spokesperson for the Debt Collective.
“The least Biden can do is help the borrowers who are quite literally running out of time, can’t wait for a more sympathetic administration in 2029,” Brewington said.
Around 9 million Americans over the age of 50 have student loans, with an average balance of over $45,000, according to an estimate by higher education expert Mark Kantrowitz.
Biden has forgiven more student debt than any other president, touching nearly 5 million people. But his attempts to deliver widescale debt cancellation have all been stymied by Republican-led legal challenges. More