With the season of giving upon us, retail sales are reaching their peak.

As sales increase, so do returns, according to Joseph LaRocca, the Retail Federation’s senior asset protection adviser in a recent interview with Cleveland.com

Most companies accept returns and put them back on the shelves; others take more drastic measures.

Employees of companies like Ralph Lauren, Borders and others say that these retailers destroy returned or damaged items, rather than reselling or even donating them.

Ralph Lauren

In July 2010, company representatives at a JC Penney store in Pennsylvania leaked to a local news station that they were forced to destroy unsold or out of season items from Penny’s – exclusive Ralph Lauren Living line.

Despite an angry response from the public, Ralph Lauren did not change its policy.

Ralph Lauren Living is not the only Ralph Lauren clothing line being sent to the trash. Employees from Ralph Lauren stores in Dallas admit that they too cut up clothes “marked out of system” on a regular basis.

“We cut up every month, it just depends on how much stuff we have. We try to clean pen marks out as much as possible, but items that are unwearable are destroyed,” said Bo Nowakowski, operations manager of the Ralph Lauren store at Highland Park Village.

According to a former manager at the West Village Ralph Lauren location, clothing that has been returned washed or with holes, pen marks or stains are marked out of system.  

Employees, who are encouraged to wear Ralph Lauren apparel, generally have a month to purchase these items at 10 percent the original price before items are trashed.

The company return policy allows customers to return items “in like new condition” at full purchase price up to 60 days post purchase, and 30 days for sale items.

Former Ralph Lauren manager at West Village, Travis McHenry says that the most expensive thing he has seen cut up was a $1,200 suede dress that had a red pen mark on the bodice – a stain that can be easily removed with window cleaner according to thriftyfun.com

“It’s not just taking jeans and cutting them into shorts, the clothing is destroyed so that it is no longer recognizable or salvageable,” McHenry said, who has witnessed a number of items destroyed, including sunglasses that were snapped in half, and an entire box of socks thrown out.

Genesis Women’s Shelter, a Dallas shelter for battered women and their children, has a thrift store which accepts clothing and other donations that are sold to benefit Genesis clients.

“All proceeds go towards helping our clients. Companies that choose to destroy their goods are doing society a disservice, especially when people can benefit from their unsold products,” Dallas Genesis Benefit store employee Suzy Edgars said.

McHenry says that he believes that the company destroys their products for asset protection, in order to keep up their high-end name.

W.R. and Judy Howell, director of the JC Penny Center for Retail Excellence, and Associate Professor at SMU Dr. Edward Fox said retailers like Ralph Lauren destroy their items because they don’t want to create secondary markets that compete with themselves. High-end companies want to remain exclusive.

“I feel like it’s not only a waste of people’s time and energy, it’s a waste of a good thing,” McHenry said.  

“I think ‘marked out of system’ items should be donated; even shoes are thrown away,” he said.

Local resale and donation stores like Buffalo Exchange accept used clothing items on a daily basis.

“Everything we buy is used. Some things are in perfect condition, but nothing is in horrible condition. It just depends on what it is,” Stevie Poulos, store manager at the Buffalo Exchange Greenville location, said.

Poulos says that customers may donate unpurchased items in any condition to the Genesis Women’s Shelter, which receives donations from Buffalo Exchange daily.

Genesis Benefit Thrift store accepts donations of all kinds. According to Edgars, whatever cannot be used, or restored is sent overseas, or passed along.

“We ask for donations that are new or gently used, excluding rips, tears or stains,” Edgars said.

While Ralph Lauren employees did not comment on why clothes were not donated to companies like Buffalo Exchange or the Genesis Women’s Shelter, they did mention other Ralph Lauren philanthropies.

The Polo Ralph Lauren Foundation supports numerous non-profit organizations and philanthropic initiatives across the country, including cancer research, education and service projects that can be found listed at www.ralphlauren.com.

The Ralph Lauren Corporate Communications office failed to return calls, and other employees in the Dallas area refused to comment on the topic.

Borders

In January 2010, Borders, a nationwide book retailer, and Waldenbooks chain announced that it was closing over 200 stores by the end of January.

According to an article published by The Huffington Post, all unsold books would be trashed.

Borders has been scrutinized for their policy before, and has since joined in alliance with Gifts in Kind, an international charity.

Borders now donates non-returnable goods, though The Huffington Post reports that books are still discarded daily.

Rachel Hughes, one of the managers at Border’s Greenville locations in Dallas, denies personally disposing of books and says she is glad the policy changed.

“Borders now donates books. People usually come to us for donations, or we will take them to places in need,” Hughes said. “It happens all the time, at least once a week.”

Bonnie Schmick, part of Border’s Corporate Communications office confirmed that unsold product is now either donated or recycled.

Borders recently instituted a recycling program in response to customer feedback.

“Any non-returnable books, CDs, DVDS and gift items that have not sold will be donated to charities or schools within the communities we serve,” Schmick said in an email.

Schmick also mentioned that like Borders, most large booksellers purchase books on a returnable basis.

“To get credit, retailers send only the cover back to the publisher, proving that the book can’t be returned for credit and later resold,” Schmick said.

Many avid readers, like history major Adam Voll, who was appalled that companies like Borders once destroyed books, suggest donating all unsold books to libraries as an alternative.

BookEnds, Dallas Public Library’s Used Book Store accepts all different donations and materials, which are resold or donated to organizations in need.

“I accept whatever I can accept. We might be able to use any donated items,” said Frank Medrano, the unit manager for BookEnds, and former employee of an unnamed bookstore.

Medrano, who was aware of Borders’ former policies said, “I think those books can be used for a better use. Books are made to be read and enrich the community.”