UK charity shop profits plummet amid shift in secondhand clothes market

[UK Charity Shops Face Profit Crisis as Online Resale Platforms Reshape Market]

Profits at some of the UK’s best‑known charity shops have plummeted as they confront a wave of pressures, including the rise of online secondhand clothes platforms, signalling that a key part of the sector’s fundraising model may be under threat.

According to unpublished accounts seen by the Financial Times, Oxfam’s retail profit fell 23% to £4.9 million in the last financial year, compared with £6.4 million in the previous year.

The British Heart Foundation, which operates the largest high‑street presence of any charity in the country, has announced plans to close 150 stores following a loss in the previous financial year. Cancer Research UK and Scope have also announced closures or are closing some of their shops.

Despite this, UK spending on secondhand clothing has more than quadrupled over the past decade, reaching £8.8 billion annually, according to GlobalData.

The shift is accompanied by the growth of websites such as Vinted and Depop, which enable buyers to sell to each other directly, reducing the traditional donation pipeline.

Alongside this change, Chinese manufacturers are exporting more garments to developing nations, particularly Africa, where unwanted secondhand clothing remains a major market.

“It has been challenging … and it is going to be painful for the sector,” Lorna Fallon, head of Oxfam’s retail operation, told the Financial Times.

Oxfam’s latest filings reveal that for every £100 spent in its shops, only £6 now goes toward the charity’s work against global poverty—down from £22 in 2022, the FT reports. The organisation’s focus on books and music means it has no intention of cutting store numbers.

In June, BHF carried out a major review of its retail arm, which employs nearly 3,700 staff, after shop profits fell from £18.8 million in 2024 to £3.6 million in the twelve months to March 2025.

The charity cited an exceptionally challenging trading environment and said it aims to close 90 more stores by the end of March 2027 and an additional 60 by the following March.

The rapid turn of fortunes highlights the sector’s vulnerability amid intense competition. Platforms like Vinted and Depop bypass traditional retail channels by connecting sellers directly with buyers, offering charity shops little control over pricing and logistics.

Another factor hampering high‑street charity shops is the increasing prevalence of low‑quality garments being donated, which critics describe as “avalanches” of substandard textiles.

“Quality is the big change marker – it’s come through the floor. You’re fighting against waste,” Tansy Hoskins, author of *Charity Shop World*, told the Guardian.

Robin Osterley, chief executive of the Charity Retail Association, added: “Fast fashion has clearly affected donation quality, there’s no doubt about it.”

However, Osterley noted that platforms such as Vinted are having a positive effect on attitudes toward secondhand buying, normalising the practice for many consumers.

He added that the primary impact may be indirect: a significant portion of charity shop shoppers also use Vinted to sell items, creating a secondary income stream for the shops.

Osterley also flagged the November 2024 budget as a major contributor to the decline, highlighting how national insurance increases and a higher threshold reducing the number of part‑time staff have driven up costs and heightened inflationary pressures.

Richard Hawkes, Oxfam GB’s chief executive, said: “While the charity retail sector has been hit by the cost‑of‑living crisis, like the rest of the high street, there is still much to be hopeful and positive for the future.”

“The growth of secondhand resale presents real opportunities for the whole sector, but it also means we need to rethink the traditional charity retail model.”

He continued: “Our shops offer more than just income—they provide a presence in communities where they might not otherwise be, while engaging with more than 20,000 volunteers. This wider role remains a vital part of what makes charity retail so valuable.”

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