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LONDON — When the British luxury label Burberry said this summer that it had burned tens of millions of dollars of unsold goods — an announcement that prompted fierce criticism — the practice was justified as an effort to maintain its “brand value.”
On Thursday, the company said it would cease burning stock immediately. In effect, it was once again seeking to preserve its brand.
Burberry, Britain’s largest luxury label by sales, revealed in its annual report in July that it had burned 28.6 million pounds, or about $37 million, of clothing and cosmetics.
The practice, which is widespread across the retail and consumer industry, is often used as a safeguard to prevent unwanted items being stolen or sold at a significant discount and in that way eroding the high-end price tags they can command in stores.
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