Burberry ends bonfire of the luxuries after waste outcry

LONDON (Reuters) - Britain’s Burberry will no longer burn unsold luxury goods to protect its brand after an admission that it destroyed almost $40 million worth of stock last year sparked a furor over waste in the fashion industry.

Burberry also said on Thursday it would no longer use real fur such as mink and racoon, in another step to improving its social and environmental credentials which was immediately welcomed by animal rights campaigners.

The waste revelation in July from Burberry came only months after the owner of Cartier and Montblanc admitted to destroying some of their unsold watches and coincides with growing public awareness of waste and its environmental impact.

“Modern luxury means being socially and environmentally responsible,” said CEO Marco Gobbetti, who is in the process of taking Burberry, where coats sell for more than 2,500 pounds ($3,234) and handbags are priced at up to 1,500 pounds, more upmarket.

Many retailers have been called out in recent years for destroying unsold stock, including by slashing or punching holes in garments before throwing them out.

Richemont, owner of luxury watch brands, said it bought back unsold stock from dealers during a recent downturn and recycled the precious metals and stones that were in the high-end pieces.

Burberry physically destroyed 28.6 million pounds worth of finished goods in the financial year to April, up from 26.9 million pounds the previous year, including 10 million pounds worth of beauty products such as perfume.

The products are generally those that did not sell via discount outlets and are more than five years old. Burberry said it would try to reuse, repair, donate or recycle its products while a strategy to make fewer, more targeted collections should help reduce excess stock.

It is also working with the sustainable luxury company Elvis & Kresse to transform 120 tonnes of leather offcuts into new products over the next five years.