HANGER REUSE: TRANSFORMING RETAIL OPERATIONS FOR EFFICIENCY AND SUSTAINABILITY
EXECUTIVE SUMMARY
Hanger reuse is revolutionising retail logistics by enabling apparel retailers to recirculate hangers through a closed-loop system. This approach delivers significant cost savings, operational efficiency, and sustainability benefits. By shifting hanger application from in-store to the manufacturing source, retailers can optimise inventory, reduce labor costs, and minimise environmental impact.
KEY BENEFITS
Cost Predictability & Reduction
The reuse model makes hanger expenses more predictable and reduces the need for ongoing capital investment in new hangers. Retailers can reinvest these savings into other business areas.
Ready-to-Sell Merchandise
Garment-on-hanger (GOH) merchandise arrives at stores floor-ready, eliminating missed hanging and accelerating product availability.
Enhanced Productivity
Store associates can focus on customer service and sales rather than hanging garments, leading to potential gains in productivity and revenue.
Inventory Optimisation
Full visibility into hanger inventories and locations allows for efficient asset management and minimises the need for excess stock.
Sustainability
Hanger reuse reduces landfill waste and supports corporate sustainability goals by keeping resources in circulation.
Consistency & Quality
Centralised hanging ensures uniform presentation and reduces product damage, enhancing the customer experience.
OPERATIONAL MODEL
1. Procurement & Application
Retailers contract with a reuse logistics provider to supply hangers directly to apparel manufacturers. Hangers are attached at the source, and garments are shipped to stores ready for display.
2. Collection & Processing
Used hangers are collected at the point of sale, shipped to processing facilities, inspected, and repackaged for reuse. Retailers receive detailed reports on hanger volumes and locations throughout the supply chain.
3. Recirculation
After inspection and sorting, hangers are reintroduced into the supply chain, ready for the next manufacturing cycle. This continuous loop ensures a steady supply and reduces the need for new hangers.
BUSINESS CASE
Cost Efficiency
The expense of acquiring, attaching, and detaching hangers is significantly reduced compared to traditional in-store hanging programs. Labor hours are minimised, and merchandise reaches the sales floor faster, creating opportunities for incremental sales growth.
Decreased Inventory Loss
Adherence to hanging standards and uniformity reduces product loss and merchandise impairment.
Competitive Advantage
Early adopters of hanger reuse have demonstrated improved efficiency, customer satisfaction, and sustainability performance.
SUSTAINABILITY IMPACT
Reduced Landfill
By recirculating hangers, retailers divert significant plastic waste from landfills.
Lower Carbon Footprint
Fewer new hangers are manufactured, reducing the environmental impact associated with production and disposal.
Support for Circular Economy
Hanger reuse exemplifies a circular supply chain, keeping materials in use and supporting broader sustainability initiatives.
CONCLUSION
Hanger reuse is reshaping retail operations by fostering efficiency, cost savings, and sustainability. Through strategic partnerships and closed-loop logistics, retailers can achieve operational excellence and demonstrate leadership in environmental stewardship. As the industry moves toward more sustainable practices, hanger reuse stands out as a proven, scalable solution for modern retail.