Fashion brands burn millions worth of their stock yearly and Burberry’s latest annual report proves it.
The British brand said it destroyed £28.6 million goods for the year ended March 31, 2018, an increase on the £26.9 million in its 2017 financial year.
“The cost of finished goods physically destroyed in the year was £28.6 million… including £10.4 million of destruction for beauty inventory,” the company’s annual report said.
According to the report, more than £90 million of Burberry products have been destroyed over the past five years.
This is common practice for big brands in the fashion world as they burn clothes, bags, and cosmetics to prevent them being stolen or sold cheaply.
Retailers say the measure is needed to protect intellectual property and prevent illegal counterfeiting by ensuring the supply chain remains intact.
“Burberry has careful processes in place to minimise the amount of excess stock we produce,” a spokesperson for the company said.
“On the occasions when disposal of products is necessary, we do so in a responsible manner and we continue to seek ways to reduce and revalue our waste.”
Richemont, a maker of luxury jewelry and watches including the Cartier brand, was reported to have disposed of €481 million worth of goods in May to prevent them being discounted on the secondary market which reduces their appeal.
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