Luxury retailers face stock squeeze as EU destruction ban takes effect

Luxury fashion groups are facing higher inventory costs due to an EU ban on destroying unsold clothing, accessories and footwear, which has now come into force.
As of July 19, large companies including LVMH, Prada, Chanel and Zara owner Inditex are prohibited from incinerating or sending unsold products to landfill.
The rules also cover customer returns and force fashion retailers to prioritise selling products through discounts or alternative markets, donating them or preparing them for reuse.