MANAGEMENT OF UNSOLD GOODS

Well managed stock is first and foremost limited stock. To do achieve this, our brands work in several different ways. First of all, we focus on value and not on volume. From the moment of purchase, we think about product use. We are not in a process of overproduction in order to sell discounted products.

Our controlling, purchasing and sales teams work together to ensure that the right products are delivered in the right quantities to the right place at the right time.

Stocks are therefore adjusted to reflect the specific needs of consumers for each store, trading area and region. We do not destroy any unsold goods. In order to reduce the quantities, we make a special effort to manage “permanent” and “repeat” products:

• the permanent products are timeless, essential wardrobe items (black leggings, navy blue tights, navy turtleneck top, white bodysuits…),
• the “repeat” products are also essential, but with a strong seasonality. They also require stock: for example, gloves in all sizes to cover the demand all winter. At Okaïdi and Obaïbi, they represent about a hundred references per season and are kept in boxes by the stores for the next season.

The lockdown in Autumn Winter 2020 forced us to proceed in the same way for the end of year collections: each store entrusted its stocks to our warehouses which have sent them back for the 2021 festive season. This is possible thanks to the timelessness of our collections.

At the end of the season, after the sales, 2 types of stock remain:

• store stock, consisting of packages of various items,
• warehouse stock, consisting of packages of products that have not been delivered to stores, either because they have had less success or because of the delay in certain openings.

Despite our best efforts, the quantities of these residual stocks vary from year to year. We are able to sell them through several channels: online private sales (where packages can now be picked up and prepared directly from the stores), digital or physical outlets of our brands, or of external brands, sales, etc.

To sell out a given collection, we need 2 to 3 years via various channels. The overstocks not sold are then offered in private solidarity sales, a social business model supported by our We Act For Kids Foundation. They can also benefit the most disadvantaged thanks to our partnership with the NGO Dons Solidaires set up in 2008.

UNSOLD GOODS IN OUTLETS IN FIGURES:

• 2.6 million Okaïdi – Obaïbi – Jacadi items were sold through outlets in 2020.
• There are 8 physical outlets: 4 of them are for Okaïdi – Obaïbi (2 of which opened in 2020), and 4 for Jacadi.

Our We act for kids foundation organized a private solidarity sale in February 2020 in Paris, following the actions already carried out in Roubaix in the two previous years. This event, which was organized by Emmaus Solidarity employees and volunteers, gave families in very precarious situations access to clothing, games and accessories from the Okaïdi, Obaïbi and Oxybul brands.

In total, in Roubaix in 2018 and 2019 and then in Paris in 2020, 28,000 new products were sold at symbolic prices to families during these solidarity events. The funds raised were entirely donated to Emmaus Solidarity and to the associations supported by the We act for kids foundation, which works to help children in need.

OKAIDI – OBAIBI – OXYBUL

Supporting vulnerable families through donations of clothes, books, games and toys has been the purpose of the partnership between our We Act For Kids Foundation and the Dons Solidaires association for the past 10 years. Dons Solidaires is in charge of collecting unsold goods from companies and distributing them to associations and disadvantaged people.

In 2020, nearly 170,000 people received donations from the ÏDKIDS group’s brands, via 140 partner associations, representing a purchasing value of more than 1 million euros, or the equivalent of one truckload of donated products per month.

For several years, our employees have been able to work in teams to help prepare packages, such as during special back-to-school operations. A great opportunity to share a sense of purpose for our employee volunteers!

GROUP – 2019 figures

Each store chooses the association to which the unsold products will be donated after an ÏDTROC. For example, in Paris, Emmaüs Solidarité and its shelter for people in great need benefited from the donations in 2020.