New data released by Australian charity Good360 has recorded a 20% increase in the volume of unsold products received from businesses over the last 12 months.
This amounts to nearly $110 million worth of unsold stock in total, including clothes, homewares, appliances, toiletries and toys, with the charity delivering them via a network of over 3,700 charities and disadvantaged schools.
Every week, Good360 receives 5 skip bins worth of products.
Good360 also revealed demand for their services has increased as the cost of living crisis has worsened, with the charity now providing new unsold goods to 3,000 Australians in financial distress every day.
The increase in demand for support and unsold goods donated has coincided with 12 interest rate rises from the Reserve Bank and a decline in retail spending.
Retail data from the Australian Bureau of Statistics show discretionary spending on items such as clothes and household goods decreased significantly in July since November 2022, down 7.2% and 8% respectively. Department store sales also decreased by 8% in the same timeframe.
Good360 Australia founder and MD Alison Covington said despite her charity redistributing millions of dollars’ worth of items to vulnerable Australians, there could be many more unsold consumer goods soon headed for landfill, potentially creating an environmental crisis.
“The cost of living crisis has created record demand for our services – we are supporting twice as many people today as we were during the Covid-19 pandemic,” Covington said. “The increased cost of living is not only creating higher demand on charities providing relief to people under economic distress, but as retail sales decline there are untold volumes of unsold products heading for waste.
“We believe the volume of unsold goods, such as clothes and toys, heading for landfill could increase even further later this year as Australians continue to reign in their spending and retailers change their seasonal product lines.”
A Deloitte Access Economics report that Good360 commissioned in 2022 found $2.5 billion of unsold household goods are wasted by businesses every year.
Covington said this suggests there could be billions of dollar’s worth of valuable consumer goods heading to landfill.
“It’s crucial governments step in and help redirect unsold goods to Australians doing it tough,” she said. “Just $1 million in funding could divert $20 million worth of unsold consumer goods away from landfill and towards people in need.
“Helping redirect unsold goods to people in need is a non-inflationary way the government can help tackle the cost of living crisis. Ensuring millions of new clothes, appliances, toiletries and other products don’t end up in landfill also prevents unnecessary waste and could avoid creating a potential environmental crisis.”
St Vincent de Paul Society NSW CEO Yolanda Saiz has also reported a large spike in demand due to cost of living.
“The St Vincent de Paul Society relies on the generosity of donations from the public and our corporate partners to be able to sell in our shops to raise critical funds to support people facing poverty, homelessness and disadvantage,” Saiz said.
“We’re seeing a huge demand for assistance at the moment due to the high cost of living, so being able to not only provide direct financial assistance to people ourselves but also partner with organisations like Good 360 is so important.”
Good360 will host an inaugural EveryOne Day fundraising event in October, with retailers and businesses around Australia aiming to raise up to $5 million in a bid to transfer $100 million worth of unsold goods to Australians in need over the next 12 months.