High-End Fashion Designers Destroy $500 Million Worth of Goods

What do major fashion brands do with the stuff they don’t sell?

When big name brands — like Nike, for example — have leftover merchandise, they have ways of moving that product off the shelf. Whether it’s to push it to a Nike Factory store or a discount retailer like TJ Maxx, they’ve found ways to still make money off of their leftovers.

But why don’t we ever see brands like Burberry, Louis Vuitton and the like on the shelves at Marshall’s?

According to Burberry’s 2018 annual records, the company destroyed more than 36 million dollars worth of merchandise: Coats, scarves and even perfume were purged to keep the brand scarce.

If Burberry’s number shocks you, strap in. What about fancy watches? Back in 2016 and 2017, Richemont — the parent company of Cartier — logged a destruction of $563 million worth of watches (Other reports have the number pegged a little lower, at more than $400 million).

They are reportedly burning the stock in what is dubbed an “inventory cleanse.”

Other companies have been accused of similar tactics, in order to maintain scarcity, and more importantly for the company, keep the price tags of these products high.

It should be mentioned that Burberry was the first high-end retailer to stop this practice when consumer and environmental groups put pressure on the designer, based on environmental and sustainability concerns.

So while you may not find any high-end brands at the bargain bin, rest easy knowing that all of those coats are not going up in smoke.