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Every year, the global apparel industry produces between 80-billion and 150-billion garments. Tens of billions never sell at full price. Some end up on clearance racks, others sit in warehouses for months, while millions are destroyed or written off altogether.
For fashion brands, excess inventory has become one of the industry’s biggest financial headaches. Unsold clothing ties up working capital, erodes margins and, if discounted too aggressively, risks damaging carefully built brand equity. FARO chain stores were created to resolve the problem.
“The fashion industry has a $300bn [about R5-trillion] excess inventory problem every year. FARO exists to solve that problem,” said FARO CEO David Torr.
In less than three years, FARO has built one of South Africa’s fastest-growing off-price fashion retail businesses by buying excess inventory from global fashion brands, which it sells at discounted prices through a growing network of stores across the country.
