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Return item for refund to retailer, missing in transit - who responsible

What are my rights or expectations if I have ordered an item from an online only retailer (UK based), the item is sent and dispatched to me. I return it day after receipt for a refund, using the free returns system (Collect plus, by Yodel), and then the item goes missing and doesn't make it back to the retailer. Do I insist the retailer issues the refund, and they claim from the delivery firm? 

How long should I be expected to wait? The item is over £100 value and I want the refund ASAP. If the delivery return provider loses something on the way then that's not my fault, I did not contract with the delivery provider, only the retailer so are they still responsible for my refund? 

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