Rick Watson and Jessica Lesesky break down three retail stories that challenge conventional wisdom this week.

Revolve runs a 60% return rate — triple the online average — and just posted a 60% profit surge. They explain how baking return costs into margins and offering frictionless two-day shipping produces 80% full-price sell-through and a customer base that treats their bedroom like a fitting room. Physical storefronts in Aspen and LA are next.

The Watson Weekly Weekend edition is sponsored by Avalara — automated tax compliance built for Shopify merchants, from calculation to returns. For more details: https://avalara.watsonweekly.com/

Lowe's just launched Home Care Plus: $99 a year gets you two Red Vest associate visits for dryer vent cleaning, HVAC filter swaps, smoke detector batteries, and water heater flushes. The real story is what Lowe's gets in return — appliance age data and a direct line to upsell the aging homeowner market.

And Buy Now, Pay Later is no longer just a checkout option. Millennials and Gen Z are 13x more likely than Baby Boomers to choose a merchant based on available financing. Fifty-five percent of Gen Z say installment options influence their choice of healthcare provider. BNPL is now a customer acquisition channel — and merchants paying 4.5–5% in fees may be getting the better end of the deal.