Charity shops are experiencing rising costs and a decline in the quality of items donated, finds survey

November 2023

Charity shops are experiencing rising costs and a decline in the quality of items donated: Research has unveiled a concerning trend for charity shops, as they grapple with rising costs and a decline in the quality of donations. According to the Charity Finance magazine's Charity Shops Survey 2023, expenditures across 35 charity retailers surged by 14% to reach £554 million in the span between 2021-22 and 2022-23.

The research, which gathered responses from 43 charities of varying sizes, including well-known organisations like the British Heart Foundation, Oxfam GB, and Age UK, also highlighted a 16% increase in staff wages during the same period, accompanied by a 6% growth in the workforce. 

A closer look at the data reveals that retail income at these charities surged by 11% to £697 million, compared to a total retail expenditure of £554 million (a 14% increase). Respondents pointed out an increase in annual rental charges, up by 2% to reach £98.9 million. This pushed the average rent for a charity shop in the UK to £26,323.

When it comes to monetary donations, people contributed £11.3 million in 2022-23, found the research, a substantial increase from the £9.3 million received the previous year, marking a 19% rise. 

Quality of donations

However, alongside these positive developments, many respondents expressed concerns about the quality of donations. People seem to be holding onto their high-quality items for longer periods and reducing their spending on new items due to the ongoing cost-of-living crisis.

One charity shared that: "The cost-of-living crisis has been somewhat advantageous for our trading. However, we are apprehensive about the declining quality and quantity of donations, especially as more people are selling items on platforms like Vinted and Depop. Furthermore, increased competition from high street stores like John Lewis and Mint Velvet, which now accept secondhand goods, has added to our challenges."

Another shared a similar experience: "Despite the continued generosity of our donors, we have noticed a slight drop in donation levels. This may be attributed to individuals making economic decisions to try selling their belongings through apps like Vinted before considering charitable donations."