There has been a “modest” growth in charity retail income despite a difficult quarter, according to a report published this week. It states that weather affected footfall in January and Easter falling in quarter two also had an impact.
The Charity Retail Association’s Quarterly Market Analysis analysed figures from January to March 2025. Some 63 charities representing 4,511 charity shops participated in the survey upon which the report is based.
The report noted that total charity retail income had grown by 0.8% year-on-year. Reporting charities saw a 0.3% increase in like-for-like in-store income in January-March 2025 versus the equivalent period in 2024.
The news comes at a difficult time for the charity retail sector. Civil Society reported last month that several large charity retailers are considering shutting shops amid “tough times”.
Transaction values increase
The report revealed that 78.8% of all like-for-like in-store income came from donated goods, while 8.4% came from bought-in goods, 7.5% from gift aid, 1.5% from rag sales, and 3.8% from other sources.
Meanwhile, the average value of a transaction rose almost 2% to £7.39, up from £7.25 in quarter one 2024, while the average number of transactions per day rose from 68 to 70.
Three-quarters of respondents reported that they sell their goods online, with online sales income growing by 8% compared to quarter one 2024.
However, as with the previous year, donation volumes continue to be at odds with quality: 60% of respondents reported that the volume of donations had a positive impact on income, while 53% reported that the quality of donations had a negative one.
Weather and falling rag prices negatively affecting income
The weather negatively impacted footfall, with 27% of respondents indicating that the weather had an adverse effect on their income levels, with January in particular reported to have been a challenging month for trading. Additionally, 39% reported that reduced footfall had a negative impact on their income.
Rag prices continue to fall: The median price for a kilo of clothing is now 13p. An increasing number of charities are reporting passing on certain categories of items for free; for example, the median price per kilo for electronics is now 0p.
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