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H&M Has a Problem, So Does WalMart


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Suzanne DeChillo/The New York Times
H&M and WalMart were caught destroying and throwing out unsold merchandise when the New York Times broke the story last week.  A graduate student had discovered bags of unworn but mutilated clothing from WalMart and H&M near Herald Square.  She wrote to H&M's corporate headquarters about the practice. On receiving no response, she called a reporter at the NYT.

H&M has denied this is its corporate policy for getting rid of unsold merchandise. Two guesses why they are doing this:


  • To protect the brand and ensure that the merch didn't end up in thrift stores. Madonna and Karl Lagerfeld are among the celebrities who have collaborated on H&M lines in recent seasons, but that doesn't make a whole lot of sense for WalMart, who's clothes aren't known for their cache. However, destroying shoes and clothing is one way to prevent people from buying new items from the racks at the Goodwill, then returning them to the store for a refund. 

  • Because it takes less time, and therefore less money, to throw out unwanted merchandise than to donate it.  In the case of WalMart, with its reputation for squeezing as much value from employees as possible, this goes along. 
Over at Treehugger, one commenter wrote in that he wasn't surprised. Jarrod wrote:

I worked for Walmart from 1994-2004. At first I was surprised this was news because they have been doing this for years. Not only do they commonly destroy clothes, but also any damaged pet food was often put into the trash rather than be donated. We were told the if we gave the clothes to a charity or dog food to an animal shelter, then "the vultures" would be in the store all the time wanting donations. No, not surprised at all. This has been standard practice (policy) for many years.


Neil tells more:

Cutting up returned or seasonal clothing is not new. When I was a store security guard for Jordan Marsh, we would supervise employees cutting clothing and shoes with heavy duty shears. All the destroyed stuff was then dumped in a dumpster. I thought it was a shame then and I mentioned donating instead. Corporate policy was to cut then dispose. Nothing changes. As a side note, Dunkin Donuts does not donate doughnuts or muffins at the end of a work day. Its corporate policy to dump them. Oh well.


Other comments add Panera, Sears and Restoration Hardware to the list of companies that destroy rather than donate unused items.  

The solution seems simple - stop destroying unsold merchandise and get it it to those who can use it - however in the world of retail, capitalism and government, it never is, we all know that. At least, now that the NYT has exposed the problem on an international level, people are talking. Talking about the totally ridiculous retail practice of consuming landfill space with perfectly good stuff rather than let somebody else have it. That game needs new rules, and I'm hoping this is the first step it changing it.

A bright model on the horizon:
Jim Dwyer, who wrote the original story on the discarded bags of clothing, reports on how retailers can do the healthy thing in "When Unsold Clothing Meet People in Need," in Friday's NYT. 


Filed under: Sellers

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