The British Heart Foundation (BHF) made a net loss of £3.3m last year from its network of 651 charity shops, its accounts show.
BHF, which had 470 clothing shops and 181 home stores in the year to March 2026, saw its retail costs rise by 5% to £240m, outstripping its 1.5% increase in turnover to £236m.
Following the financial year-end, the charity sector’s largest retailer announced plans to close 150 of its shops by March 2028.
Explaining the decision in its recently filed accounts, BHF said the level of financial return its shops generated in 2025-26 was “not sustainable” and the closures reflected “rising operating costs and changing customer habits”.
“The changes are designed to ensure our retail network remains strong and sustainable,” it said. “On the basis the proposals proceed, implementation will likely result in limited recovery.”
Overall, the charity’s £441m expenditure exceeded its £416m income, however it also recorded an additional £17.4m net gain on investments in 2025-26.
Record fundraising income
Despite the retail challenges, BHF raised record fundraising income of £62m and a further £106m from legacies in 2025-26.
The charity awarded £103m in new research grants, increasing its portfolio by nearly £23m year-on-year to £485m.
It spent £45.2m on raising funds and £145m on total staff costs, including redundancy payments of £1.1m arising from restructuring activities.
BHF chief executive Charmaine Griffiths said: “Our annual report shows BHF at its best: protecting hearts today, backing world-class science and building the foundations for even bigger breakthroughs tomorrow.
“Thanks to our incredible supporters, we expanded our research portfolio to the highest level since the pandemic, reached millions of people with trusted health information and support and delivered a record year for fundraising despite significant external pressures.
“These pressures mean we must also now make difficult decisions, including proposed shop closures, to protect sustainable income for lifesaving research.”
