The rise of the charity shop

The retail sector is fighting for its life. Last year, almost 50 shops closed every day across the UK and it’s a similar story this year.

But one shop is bucking the trend – the charity shop. Not only are bricks-and-mortar stores growing in number, but sales are through the roof.

For example, Oxfam’s retail income increased from £39.4m in 2020/21 to £90.3m in 2021/22, while Barnardo’s saw growth of 158% year-on-year to £78m in 2022.

And the trend is being seen across the sector. Data published by the Charity Retail Association shows that, between October-December 2022, there was a 9.1% increase in the average number of transactions per day in charity shops compared to the same period in 2021.

According to the latest figures, charity shops are now estimated to raise around £360m a year for charities, which exceeds pre-pandemic contributions.

What’s caused the surge in popularity?

There are three key factors at play:

Sustainability

The focus on sustainability has slowly been increasing for at least a decade now. And charity shops in particular have become a big part of people’s efforts to shop more sustainably. Back at the start of the pandemic, a study found that 60% of people were making more environmentally friendly or ethical purchases.

What better place to do that than at a charity shop? Especially as fast fashion is, well, falling out of fashion. People want sustainable options - such as second-hand clothes - and a good deal. Charities tick both boxes.

Cost-of-living

Charity shops are central to their local communities and one of the first places people turn to when money is tight, so it’s not surprising footfall has increased during the cost-of-living crisis, as people look to get the best value for their money.

Social Media

Social media has also played a part in the charity shop boon.

The hashtag #CharityShopHaul has amassed 217 million views on TikTok, thanks to the rise of charity shop influencers - yes, they exist - like Jen Graham. She’s built a loyal fan base of more than 70,000 followers over the last year, who love seeing her show off her charity shop hauls.

Next level

The nation’s obsession with thrift shopping has led to the emergence of initiatives that take charity shopping to the next level:

Charity superstores

Cancer Research UK and The Salvation Army have taken charity shopping to the next level by launching multi-department charity superstores. Housed in retail units left vacant by failed brands such as Debenhams, they offer everything from furniture and homeware to electricals and fashion.

Charity Supermarket

Charity Super.Mkt, - the UK’s first multi-charity fashion pop-up store, was the brainchild of Wayne Hemingway, founder of British fashion brand Red or Dead, and Maria Chenoweth, CEO of sustainable clothing charity TRAID.

The supermarket opened in Brent Cross shopping Centre in January 2022, and offered a curated selection of stylish second-hand garments, bringing together the best donated clothing sourced from 10 UK charities under one roof.

The first time that national and local charities have collaborated on a store, the proceeds were split between Age UK, Blue Cross, Cats Protection, DEBRA, Havens Hospices, Helen and Douglas House, Marie Curie, Shaw Trust, Shelter, Smart Works, Sue Ryder, Thames Hospice and TRAID.

In four weeks, the initiative raised over £300,000 and saved 11 tonnes of clothing from landfill.

Charity Shop Gift Card

In another ‘first’ for the charity sector, The Charity Retail Association (CRA) rolled out the UK’s first  Charity Shop Gift Card.

Accepted in shops run by regional and national charities in most areas of the UK, the card is made from recycled materials, and can be purchased on the CRA’s website and at participating shops, including Sainsbury's, Tesco, Boots, Asda and WHSmith.

As a social enterprise, 65% of annual profits from sales of The Charity Shop Gift Card will go to UK-based charities.

Brand/charity collaborations

There are also a growing number of collaborations between mainstream high street brands and charity shops, as corporate responsibility moves higher up the agenda for companies. 

For example, in 2017, high street clothing retailer TK Maxx staff launched a campaign called ‘Give Up Clothes for Good’.

Championed by celebrities and families living with cancer, the initiative rallies people across the UK to drop off their quality, pre-loved clothes, accessories, and homeware at collection points in all TK Maxx stores. The items are then sold in Cancer Research UK shops to raise funds to support research into children’s and young people’s cancers. 

TK Maxx customers have collected over 1.7 million bags of donated goods, amounting to more than 8800 tonnes of pre-loved items diverted from landfill.

The future is digital

Digital fundraising through online retailing is nothing new: the first online charity shop was launched by Oxfam back in 2007. But people are spending more time online than ever before. This, combined with the UK’s new-found enthusiasm for second-hand bargains, means the opportunity for charities to establish online charity shops as major digital fundraising sources has never been greater.

Looking to build up a digital fundraising team? We can help. Call us on 0203 750 3111 to find out how.