UK charity shop profits plummet amid shift in secondhand clothes market
Summary
Several major UK charity shop chains face falling profits and store closures despite strong growth in secondhand clothing sales. Online resale platforms, rising operating costs and declining quality of donated clothes are among the pressures cited, though the Charity Retail Association says online platforms may also help make secondhand shopping more popular.Key Facts
- Oxfam’s retail profit fell 23% to £4.9 million in its latest financial year, from £6.4 million the year before.
- For every £100 spent in Oxfam shops, £6 now supports its work to alleviate global poverty, down from £22 in 2022.
- The British Heart Foundation plans to close 150 stores after its retail profit fell from £18.8 million in 2024 to £3.6 million in the year ending 31 March 2025.
- Cancer Research UK and Scope have also closed, or are closing, some shops.
- UK spending on secondhand clothing reached £8.8 billion a year, four times its level a decade ago, according to GlobalData.
- Online platforms such as Vinted and Depop let people sell clothes directly to buyers, while charity shops face costs for rent, collection, sorting, pricing and storage.
- Charity retail representatives say the quality of donated clothes has declined, partly because of fast fashion.
- Oxfam says it has no plans to reduce its number of shops, citing its focus on books and music.
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