Charity shops see profits fall

Finance | 1 Sep 2005

UK charity shop profits have fallen by 0.1 per cent, according to the Charity Finance Charity Shops Survey 2005. Complying with onerous legislation and costs associated with staffing and waste disposal have been highlighted as the key causes.

Charity shops are also facing up to the reality that driving sales is increasingly producing diminishing returns. The graph illustrates that over the past decade the cumulative effect of generating increased sales has declined to the point where an extra pound of income today is providing just 11 pence of extra profit, compared to over 20 pence 10 years ago.

Oxfam retained its position as the most profitable chain posting profits of £20.6 million, up by 15.6 per cent on the previous year. Cancer Research UK, British Heart Foundation, British Red Cross and Barnardo's make up the top five UK charity shop chains.

The 2005 Charity Shops Survey is available to subscribers to Charity Finance by clicking here. Non-subscribers wanting a copy should call 020 7819 1204.

Average profit return per £ of cumulative sales

sep05shopprofits2

Directory: Barnardo's | British Heart Foundation | British Red Cross | Cancer Research UK (CRUK) | Oxfam

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