For a long time, the fashion industry has regarded product returns as an unavoidable business expense. Consumers frequently purchase multiple sizes, placing a logistical burden on retailers, with countless garments traveling back and forth before landing on shelves or ending up in landfills. Fast-fashion brands have integrated this practice into their business models, resulting in online fashion return rates averaging roughly 40%.
The financial burden and environmental impact of returns are becoming increasingly apparent. Returns diminish retailer margins while contributing substantial transport emissions, excess packaging, and waste. With growing pressure on brands to boost profitability and enhance sustainability, the focus is shifting from managing returns to preventing them altogether.
This challenge has caught the eye—and the investment—of James Caan CBE, a notable British entrepreneur. Known for his role on Dragons’ Den, the U.K.’s version of Shark Tank, and as the founder of private equity firm Hamilton Bradshaw, Caan has made a significant financial commitment to SNAG, a size-inclusive hosiery and apparel company established by Brie Read. This marks Caan’s first consumer-facing investment in two decades, highlighting increasing interest from investors in business models that address systemic inefficiencies rather than merely competing on price or marketing.
SNAG’s core proposition is straightforward: By designing clothing that fits more bodies correctly the first time, the need for returns decreases. The company claims to have reduced returns to approximately 2%, a stark contrast to the industry average, by producing garments in sizes ranging from U.K. size 4 to 38 (about U.S. sizes 0 to 34), instead of following conventional sample size grading.
This strategy aims to serve a customer segment long overlooked by mainstream fashion while simultaneously minimizing one of retail’s most significant operational expenses. Since its inception in 2018, SNAG has sold over three million products and generated more than £250 million ($335 million) in revenue, proving that inclusivity can be both financially viable and socially impactful.
Caan views the investment as an opportunity to reshape fashion economics, not just to support another consumer brand. He remarked, “The current fashion model is under increasing scrutiny. High return rates diminish profitability and create unnecessary waste on a large scale. SNAG’s ability to maintain returns at around 2%, compared to an industry average of 40%, illustrates that an alternative model is feasible and commercially attractive. By catering to a broader customer base, the business unlocks a considerably larger market potential. I support founders who display conviction, and Brie has developed something genuinely transformative.”
This investment comes amid rising logistics costs, tighter margins, and increased scrutiny regarding environmental practices faced by fashion retailers. Returns have emerged as one of the industry’s most costly hidden liabilities, especially as online shopping continues to dominate apparel sales.
SNAG has fundamentally structured its business around minimizing the reasons customers return products, rather than treating returns as an inevitable e-commerce outcome. Read believes traditional sizing has historically favored manufacturing ease over actual customer needs. “Sizing has always been centered around a narrow conception of the intended wearer, requiring everyone else to adapt,” she explained.
“Our approach demonstrates that designing for actual bodies benefits both customers and business outcomes. With James’s involvement, who brings experience and belief in our mission, we have the foundation to advance even further and faster,” Read stated.
Beyond the financial boost, Caan will collaborate with SNAG’s leadership as the company seeks international expansion and scales operations. This investment reflects a wider trend among investors prioritizing consumer businesses capable of resolving costly operational challenges while aligning with heightened consumer expectations surrounding sustainability and inclusivity.
If these trends persist, fast fashion may give way to fashion that truly fits.