last word
The last WORD
Cut clothes waste down to size! With sustainability and profits more important than ever, now is the time to reduce waste.
By Helen Slaven, Torex
Helen Slaven, vice president of Retail, Torex
The age of ‘fast’ fashion that we live in now accounts for a fifth of the UK retail market, having doubled its growth over the last eight to 10 years. High-street retailers are faced with the challenge of keeping pace with style-hungry consumers keen to get their hands on the latest trends. Linked to this is the issue of increasing quantities of clothes wasted by retailers over- ordering. Recent incidents where surplus stock has been binned or destroyed damaged the brand images and ethical reputations of those involved. The supply chain is a critical area to be explored; how can retailers ensure they cater for demands without producing excess garments, which often go from bargain bin to litter bin?
A
ccording to DEFRA, in the UK two million tonnes of clothing are bought every year at a value of £23 billion. Approximately 50 per cent of these items will end up in landfill, as consumers throw out last season’s outfits and retailers dispose of unsold clothes, and consequently the proportion of textile waste at council tips has risen over the past five years from seven to 30 per cent. Alongside a desire to conserve
resources, the retail industry’s support for reducing clothes waste is motivated by a desire to avoid negative publicity and boost bottom lines. Any clothes that retailers throw away are effectively wasted money that could have been invested elsewhere in the business. Thus there is keen interest amongst fashion retailers in an effective, accurate supply chain model to cater for the pace of the market and reduce wastage. Companies such as
34 Department Store Buyer
us work with retailers to look at how steps such as accurately predicting sales to reduce overstocking can make a dramatic difference to the quantities of clothes that end up being surplus. The backend processes within
the retail supply chain are important for cutting back on waste. Some of the fashion retailers we speak to still rely on legacy spreadsheet-based solutions for stock planning and distribution requirements. This model has limited capacity to cater for fast-changing fashion trends. Automated merchandise planning systems serve far more effectively, going beyond the traditional methods of allocating stock by store size. Added to this, spreadsheet- based systems work on the basis of having a set cut-off point between the ordering of one season’s items and those for the next. Sophisticated planning tools take into account a range of variables, including the needs of the local market, store type and other factors such as planned promotions. They also have the flexibility to allow buyers to ‘blend’ items from more than one seasonal range, depending on the local climate and market. With a unified stock-ordering platform, planners have access to clear and up-to-date information about ordering trends, allowing arrangements to be made with suppliers to ensure that global stock levels are able to match demand. For consumers this means being able to buy the items they want in the right size at the right time for them. For retailers it equates to less surplus stock and wasted garments. The most savvy of retailers are
also turning green activities into brand-strengthening opportunities,
boosting their environmental credentials and protecting their brands from any suggestion of clothes wastage. Research from DEFRA’s Sustainable Clothing Roadmap found that fair trade and organic initiatives are now running in over 150 UK retail outlets and consumers are becoming increasingly aware of the impacts associated with clothing. It is certainly the case that retailers’ endeavours to help save resources can lead to increased customer trust and loyalty through the “triple bottom line”, which suggests that brands are increasingly measured in terms of their economic, environmental and social responsibility. A great example is M&S, which has committed to increasing the number of clothing garments its customers recycle every year from two million to 20 million, as well as partnering with Oxfam as part of its strategy, Plan A. The gravity of this issue is now hitting home and retailers cannot afford to make mistakes. Merchandise planning and allocation have a key role to play in helping retailers cut down on unnecessary stock production, but their usage must be accompanied by a robust and ethical overall approach to retailing, beyond lip service to the issue. Effective backend technology and processes, combined with other strategic measures, such as the use of factory outlets and charitable donation schemes, should see dramatic reductions in the quantities of clothes thrown away by retailers. What’s more, it is likely that those retailers that tackle waste quickly will benefit from cost savings and public support. ■
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