Advertise with fastmoving.co.za
 
 

Burberry is to stop burning millions of dollars' worth of excess stock, it announced last week.
Burberry is to stop burning millions of dollars' worth of excess stock, it announced last week.

Burberry to stop using fur and burning unsold stock

INTERNATIONAL NEWS

By Lisa Handley - Sep 11th 2018, 16:16

Burberry is to stop burning millions of dollars' worth of excess stock, it announced recently. 

The British fashion house's annual report stated that it destroyed £28.6 million ($37.1 million) of goods for the year ended March 31, 2018, an increase on the £26.9 million in its 2017 financial year.

Now it will cease the practice and is likely to donate garments to charities such as Smart Works, a U.K. organisation that provides interview clothes to unemployed women to help them get jobs.

The fashion brand will continue to work with companies such as Elvis & Kresse, a business that uses leather offcuts from Burberry products to create bags, belts and other accessories. It is also part of the Make Fashion Circular initiative that aims to make new clothes from renewable material and recycle old clothing.

The company also said it will no longer use real fur in its products. It currently sells products with fur trims, such as a wool trench coat with a fox fur collar listed at $2,195 on its U.S. site.

Burberry CEO Marco Gobbetti said in a statement emailed to CNBC: "Modern luxury means being socially and environmentally responsible. This belief is core to us at Burberry and key to our long-term success. We are committed to applying the same creativity to all parts of Burberry as we do to our products."

The announcement comes at a time of change for the 162-year-old company. Gobbetti is pushing for the firm to become a "higher luxury" fashion house, like Gucci or Hermes, and announced a 2 percent rise in full-year adjusted profit to £467 million ($604 million) in May.

Gobbetti, in charge since July 2017, hired Italian designer Riccardo Tisci as its creative director in March. Tisci replaced Christopher Bailey, who had been at the company for 17 years, and his debut collection will be shown at London Fashion Week on September 17. The company also revamped its logo, creating an interlocking TB pattern after founder Thomas Burberry, in August.

Burberry isn't the only company to destroy goods. Richemont, a maker of luxury jewellery and watches including the Cartier brand, was reported to have disposed of 481 million euros ($557.2 million) worth of goods in May to prevent them being discounted on the secondary, or "grey" market, which reduces their appeal.

CNBC 

Read more about: retailer | retail | products | fashion | burberry | brand

Related News

Key trends in grocery retail 2019
21/01/2019 - 11:00
As consumer expectations continue to shift, grocery retailers must ensure that they keep a finger on the pulse of changing demands. James Butcher, managing director of grocery retail specialist, Solutions for Retail Brands (S4RB), examines the key grocery trends to keep an eye out for in 2019.

Verimark shareholders approve delisting
21/01/2019 - 09:36
Verimark shareholders approved a plan to take the direct retailer private, sending the stock to its best close in nearly eight years.

Woolworths bedeviled by declining sales
18/01/2019 - 10:35
As Woolworths tries to recover from the impairments of A$712.5 million (R7.02 billion) it suffered last year in its Australian subsidiary David Jones, the retailer continued to experience declining sales in the 26 weeks to end December trading period in South Africa.

TFG bucks retail trend over festive season
18/01/2019 - 08:00
Apparel group TFG, which operates the Foschini, American Swiss and Markham chains, has bucked the retail trend and produced solid growth numbers for the festive season.

Edcon gets some breathing space
17/01/2019 - 10:34
Edcon is at a turning point yet again. The retailer — which operates the Edgars, Jet and CNA chain stores — has just wrapped up a deal with 250 stakeholders, including its shareholders and landlords, in a bid to keep its doors open.