Must Read: Los Angeles Donation Centers Are Overwhelmed With Used Clothing, How Brands Are Battling the Holiday Returns Surge

These are the stories making headlines in fashion on Wednesday.

Los Angeles donation centers are overwhelmed with used clothing

As the devastating wildfires in L.A. continue to strip residents of their belongings and homes, centers collecting items for displaced members of the community are overwhelmed by the thousands of pounds of used clothing being donated. “Much of the clothing being donated is likely low-quality, fast fashion that lacks longevity or utility for recipients in need,” Rachel Kibbe, CEO of Circular Services Group told Business of Fashion. “This crisis is just one example of the broader challenges we face with overproduction, overconsumption and insufficient infrastructure to handle clothing waste responsibly.” {Business of Fashion/paywalled}

How brands are battling the holiday returns surge

With fashion’s problem of mass returns only getting worse (during the 2024 holiday season, $112 billion in merchandise was returned by customers globally), brands are looking for ways to protect their margins. One method is the introduction of AI customer service representatives intended to expedite lower-level return cases and reserve the human agents’ time for high-value cases. Another idea is to incentivize customers with discounted bundles, free shipping and other perks. Calia Schwartz, director of consumer insights and strategy at Salesforce tells Vogue Business, “This can help offset the costs of other consumers’ returns and help to foster stronger relationships with a retailer’s most loyal customers.” {Vogue Business/paywalled}

The Los Angeles retail community contemplates its next steps in the wake of historic wildfires

As so many stores across L.A. have faced damage and destruction due to the ongoing wildfires, retailers are attempting to navigate the rebuilding, reopening and recovery needed. Although the U.S. Small Business Administration announced on Friday that low-interest federal disaster loans would become available to businesses in the affected areas, local business owners worry it is not enough. “Something desperately needs to change in the small business arena, particularly for California,” Wonny Lee, founder and CEO of Elorea (who had to re-open her new L.A. store after the intense winds broke its windows) tells Glossy. “If things are not changed in a very, very short period of time, you’re gonna start seeing a lot more chains than new, fresh, mom-and-pop and small business ideas come to fruition. Because it’s just impossible to navigate and too expensive.” {Glossy}

Prada’s growth plan amid luxury’s slowdown

In an interview with Business of Fashion, Prada Group’s CEO Andrea Guerra discusses Prada and Miu Miu’s strategy that has delivered surging sales amid the broader luxury slowdown. “The industry is at a turning point: You have turmoil in creativity, turmoil in companies’ leadership, and for the first time in years, you have some negative numbers like the industry has never seen,” Guerra explains. “Our brands really are here to allow people to dream…the more we can dream the more we’re linked to society and culture, the more we can allow our next generation [of customers] to dream with us. {Business of Fashion/paywalled}

Araks collaborates with J.Crew

Lingerie brand Araks is the latest brand to collaborate with J.Crew, launching a 12-piece collection of slips, bras, robes and more. Araks’ founder and designer Araks Yeramyan ideated the brand while working in J.Crew’s trim department in the late ’90s. “This collaboration brings together our shared love of color, simplicity and appreciation for art and design,” she said in an interview on the J.Crew website. “[It] strikes the perfect balance between comfort and style, which is something I always strive for in my designs.” See (and shop) the full collection below.

Sephora to redesign entire store fleet

At the National Retail Federation’s Big Show conference on Monday, president and CEO of Sephora North America, Artemis Patrick, told an audience that some of its more than 3,000 international stores will get “major redesigns, and some will get minor [ones].” Patrick specified improvements to store lighting, the check-out process and brands’ in-store merchandise displays. Sephora has already implemented these changes in over 111 stores. As a result, sales, transactions and productivity are up. {Retail Dive}

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Source: Fashionista.com