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Burberry burns excess stock to keep prices high

No, you will not have that £950 backpack for a penny less.

So, if you work in retail you might already know this, but to the rest of us, it's a little weird: Burberry. along with lots of other brands, burns its excess stock at the end of the season.

What it means: Part of the reason why designer stores can put their prices up so high (the cheapest rucksack at Burberry costs £950) is that there's limited supply, which they hold tight control over.

But if the season comes to an end and they've not sold everything, they can't just throw it away – what if people fish out the clothes from the bin, sell them for cheap on a market somewhere, and steal away the customers who'd otherwise have come to Burberry?

Here's a bright idea: Burn it all. It's all done in a way that carefully mitigates the environmental impact, the company says. And it turns out other places do it too: Chanel and Louis Vuitton for example, or Swiss watchmaker Richemont who destroyed £400m worth of designer watches in the last two years.

Even shareholders think this is a bit mental, and suggested the extra stock is given to private investors (well look how that one turned out). Campaign groups say companies should just stop producing so much instead of creating so much waste.

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