ly, a brand opportunity. According to the report, the estimated waste of unsold retail goods has risen by 17 per cent since 2021, reaching $2.9 billion annually, with an additional $1.5 billion in online returns often discarded rather than restocked or redistributed.  The categories experiencing the fastest growth in waste, namely toiletries, cleaning products and clothing and footwear, are also the ones most in demand by vulnerable communities. And that, says James Atkins, newly appointed chair of Good360 Australia, is where the retail sector can step up. “If a retailer can sell through by marking down, they should definitely do that. Where we see the opportunity is in retailers partnering with Good360 on stock that has become idle, taking up space in the warehouse or headed to landfill,” Atkins told Inside Retail.  “By redirecting those goods to us, they will avoid warehouse and landfill costs, whilst delivering value to communities in need. A win-win,” he added.  Good360 is a not-for-profit organisation that redistributes unsold retail goods to Australians in need, helping reduce waste while supporting vulnerable communities. From inventory headache to social value Retailers face mounting challenges managing aged inventory, returns overflow and waste, all while navigating growing ESG expectations. For many, redirecting surplus goods to those in need has become a critical strategy. A growing number of retailers are working with redistribution partners to clear excess stock and demonstrate social impact. The value proposition is clear on unlocking potential from unsold goods that would otherwise weigh down balance sheets or harm sustainability targets.“Diversion of product from landfill is where it starts, but the stories of impact are what will be powerful in engaging your customers and teams,” Atkins said.  Returns are an escalating concern, especially in e-commerce. In 2024 alone, $1.5 billion worth of online returns were expected to be discarded, often unopened. This adds pressure to find alternatives to landfill disposal.“There are direct costs of holding idle stock, sending unsold stock to landfill, and with landfill capacity projected in NSW to run out by 2030, this option will increase in cost and become severely constrained,” he explained. “It therefore makes business sense to address what may be hidden or not fully factored in expenses. Additionally, community and critical staff expectations and requirements around ESG performance and reporting are ramping up. Sending perfectly good products to landfill will, if not already, become untenable,” he added.  Retailers increasingly face reputational risks if their excess stock policies fall short of public scrutiny.“Ten years ago, most of this happened out of sight. Today, transparency is table stakes. Retailers need to be able to show they’re doing the right thing – with stock, with sustainability and with community impact,” Atkins said. The shifting landscape is making surplus stock management a strategic priority that touches brand value, environmental responsibility and social equity.“If your business is holding onto returns, discontinued lines or aged inventory, those goods could be doing good. It’s about reducing friction, for your supply chain, for your team and for communities doing it tough,” he concluded.  Turning surplus inventory into strategic advantage As part of the wider $4.5 billion surplus stock challenge facing Australian retail, leading brands including Big W, David Jones, Tommy Hilfiger and The Iconic are implementing initiatives to redirect excess inventory, reduce waste and boost ESG credentials. These initiatives highlight a strategic shift in the retail sector, where addressing surplus stock and sustainability challenges is not only a moral imperative but also a business opportunity to heighten ESG efforts.  Big W Since 2018, Big W has partnered with Good360 Australia, donating over $89.5 million worth of goods, including more than 9 million new items, to communities in need.  David Jones In partnership with GlamCorner, David Jones launched the Reloop initiative, a sustainable fashion platform that enables customers to resell, rent, repair or recycle their clothes. This program aims to reduce fashion waste and promote circular fashion practices. Tommy Hilfiger Australia Tommy Hilfiger collaborates with Thread Together to address excess stock and support individuals facing hardship. Through this partnership, brand-new clothing is donated, promoting social responsibility and environmental sustainability. The Iconic As part of its commitment to building a circular fashion system, The Iconic has partnered with Rcycl to offer customers options for donating or recycling pre-loved clothing, diverting textiles from landfills and supporting sustainable consumption. LFRA members Members of the Large Format Retail Association (LFRA) collaborate with Good360 to donate unsold stock, supporting sustainability efforts and aiding communities across Australia. LFRA members include JB Hi-Fi, Bunnings, Officeworks and The Good Guys.