Abstract A challenge facing our future society is how to address the excess volumes being produced and consumed, as our current lifestyles are threatening planetary boundaries. The fashion industry is one that has a major impact on the environment. While previous research on the industry has focused on either unsustainable production or consumption, this study demonstrates how overproduction and overconsumption are linked by conceptualising discounting as the missing link. The study clarifies how discounting, on the one hand, is a sign of overproduction and, on the other, how discounting sustains a high degree of consumption inside and outside firms. Using an ethnographic study of the Swedish fashion industry, three types of discounting practices were identified: pre-season, in-season, and end-of-season sales. The reasons for discounting were grouped into four categories: procurement, financial and spatial, market, and design. Most retailers reported discounting as problematic, but difficult to eliminate. Hence, companies have developed strategies for reducing end-of-season sales, for example, optimising the supply chain and stimulating the market, as well as alternative solutions with a more sustainable future consumption at their core. The final discussion revolves around alternative solutions for how to address the issues of overproduction and overconsumption in the future.
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