Charity Shop Profits Fall as Online Resale Reshapes Secondhand Clothing

The British charity shop has long been a fixture of the high street, a place where a good coat or a first edition might turn up for a few pounds and the money goes to a cause. New figures suggest that model is under real strain, even as the country buys more secondhand clothing than ever.

The Guardian reported on 31 October that profits at several of the best known charity retailers have fallen sharply, citing unpublished accounts first seen by the Financial Times. The story raises a practical question for anyone who donates, shops or volunteers: where is the secondhand market going, and who is benefiting from it?

The Figures Behind the Headline

According to the accounts reported by the Financial Times, Oxfam's retail profit fell 23 per cent in the last financial year, to £4.9 million from £6.4 million the year before. Oxfam's filings also show that for every £100 spent in its shops, about £6 now reaches its work on global poverty. As recently as 2022, the figure was £22.

The British Heart Foundation, which has the largest high street presence of any charity in the country, has announced plans to close 150 stores. It said it aims to close 90 by the end of March 2027 and a further 60 by the following March, after describing an exceptionally challenging trading environment. Cancer Research UK and Scope have also closed, or are closing, some shops.

A Growing Market That Charity Shops Are Missing

The striking part of the story is that demand is not the problem. According to GlobalData, spending on secondhand clothing in the UK has quadrupled over the past decade to £8.8 billion a year. Buying preloved is no longer a compromise. For many shoppers it is a deliberate choice about value, style and waste.

The shift is in how that clothing changes hands. Platforms such as Vinted and Depop let people sell directly to one another, so a jacket that might once have gone into a donation bag is now photographed, listed and sold by its owner. The seller keeps the money, and the charity never sees the item.

The Costs of Bricks and Mortar

Charity shops also carry costs that online sellers avoid. They pay rent on high street premises and warehouses, and they must collect, sort, price and store everything that comes through the door. Each of those steps takes staff or volunteer time.

The quality of donations is another pressure. Tansy Hoskins, author of Charity Shop World, has said the quality of donations has gone through the floor, as cheap fast fashion purchases are dropped off when they are no longer wanted. Exports of unwanted clothing to overseas markets, particularly in Africa, have also become harder as Chinese companies sell more new clothing there.

Not Everyone Blames the Apps

The sector does not speak with one voice on the cause. Robin Osterley, chief executive of the Charity Retail Association, said that fast fashion has hurt donation quality but that his organisation does not see Vinted or other platforms as a significant issue. He argued that online resale has made secondhand shopping more normal, and that many people buy from charity shops in order to resell items online, which brings income to member charities.

Mr Osterley pointed instead to the November 2024 Budget. He said the rise in employer national insurance and the lower threshold, which affects more part time staff, had a significant effect on costs, alongside wider inflation.

Oxfam GB's chief executive, Richard Hawkes, said the growth of secondhand presents real opportunities but means the sector must think differently about the traditional charity retail model. He added that the shops give Oxfam a presence in communities and opportunities for more than 20,000 volunteers. Oxfam's focus on books and music means it has no plans to reduce its number of shops.

What It Means for Donors and Shoppers

For the conscientious donor, the lesson is simple. Quality matters more than quantity. A small bag of clean, wearable pieces is worth far more to a charity than a large one filled with items that will cost money to dispose of. Books, records and good homeware remain valuable, as Oxfam's strategy suggests.

For shoppers, the charity shop still offers something the apps cannot: the pleasure of browsing in person, a conversation with a volunteer and the knowledge that the purchase supports a cause. Whether that is enough to sustain the model is the question the sector now faces.

The high street charity shop is not disappearing, but it is being forced to change. Follow Duchess Magazine for more on British business, style and the institutions that shape everyday life.