Luxury groups face inventory squeeze under EU destruction ban
Summary
EU rules moving toward banning the destruction of unsold goods threaten a standard luxury playbook: using write-offs and product disposal to manage excess inventory and protect brand scarcity. Luxury groups are being pushed to find alternative ways to clear stock without visibly discounting or diluting exclusivity.
Why it matters
The ban forces luxury to choose between margin protection and scarcity optics, reshaping how brands price, produce, and manage demand in Europe.