The income of UK charity shops increased by 2.2 per cent in real terms in the first quarter of 2014, compared to the same quarter the previous year, according to new figures released by the Charity Retail Association.

The increase follows three quarters of low or negative growth for charity retailers, the CRA said.

The figures, published today, were taken from the CRA’s quarterly market analysis reports, which are based on a poll of the association’s members.   

The figures were based on 49 charities, who reported their income had grown from £126.2m in the first quarter of 2013 to £131m in the same period this year. This marked a 2.2 per cent increase when adjusted for inflation.

Figures for the previous quarter showed a drop in income of 1.9 per cent in real terms, from £163.6m in October to December 2012, down to £163.4m in the same period in 2013, based on a sample of 62 charities.

The CRA said the drop in the run up to Christmas, which is usually a strong trading period, was down to bad weather and consumers tightening their budgets.

The first two quarters of the year showed increases of 0.8 per cent and 0.5 per cent, respectively, in real terms.

The CRA said a total income figure for 2013/14 was not yet available. It will be based on figures from the association’s research and the annual Charity Shop Survey, produced by Charity Finance and Fundraising magazines, and due to be published in October.

In 2012/13, CRA's 400 members, which represent 80 per cent of the UK’s charity shops, had a combined income of £1.2bn.  

Warren Alexander, chief executive of the CRA, said: “On average, 2012/13 was characterised by low or negative growth for association members. However, the past year of trading for the charity retail sector has seen a bounce back.

“It looks like this is due to a number of factors, including confidence returning to the retail sector as a whole, the economic picture is on the up, and most importantly – the exciting and innovative work by our members to help attract new customers and existing ones.”

The Welsh paediatric palliative care charity, Tŷ Hafan, which has 23 charity shops in south Wales, created a premium boutique style brand, Emporium, which operates alongside its standard shops. The two shops, which opened in November 2013, reported income of £35,000 since the start of this financial year, representing a profit margin of 30 per cent and 8 per cent of total income.

The Air Ambulance Trust has used charity pop up shops to raise its profile and attract a new type of customer.  Specialist pop up shops at vintage fairs, festivals and country shows have raised more than £22,000 and boosted profit by 5.5 per cent in 2013.
 
The British Heart Foundation set up an eBay shop in 2006 on a small scale to help maximise profits on collectable and valuable items. In June last year the charity invested in the operation with new equipment and increased staff members from two to 25 working on it.

It has since recouped costs and made a net profit of £269,000 in the last financial year – an 83 per cent increase on the previous year.
 
Diane Locke, BHF’s deputy retail director, said: “BHF has always prided itself in raising the maximum funds from items generously donated by our supporters.  With the addition of our eBay shop, our local donators now know we can reach a global audience – allowing us to sell items for their true value.”

Charity Finance and Fundraising magazines' annual charity shop survey, the most comprehensive guide to the world of charity retail, sponsored by the CRA, will be published in October. Click here to pre-order your copy and save £25.00