Oxfam GB has denied reports that it is looking to scale back its retail operations by closing up to 100 shops and a warehouse.
The charity noted a difficult economic climate but said it currently has no plans shut any shops or its Batley warehouse, home to its main textile recycling centre.
Last week, the Guardian quoted an inside source who claimed Oxfam was considering closing a fifth of its 500-plus UK outlets as sales at some were no longer viable, citing a drop in donations and competition from online sellers of second-hand goods such as Vinted.
However, Lorna Fallon, chief supporter officer at Oxfam GB and recently appointed as the Charity Retail Association’s next chief executive, said: “As is standard practice, we keep all parts of our retail operations under review via regular meetings.
“While we cannot give guarantees in this difficult economic climate, we are confident in and positive about our current retail performance and do not have plans to close our shops or warehouses at this time.”
Slump in rag prices
The Guardian also reported that the charity was considering the warehouse closure as part of a cost-cutting drive. The price of rag - damaged or unwanted clothing and home textiles for recycling, which was once a key source of income for charity retailers - has fallen dramatically in recent years.
But a spokesperson for Oxfam GB said: “We are not planning on closing the site.
“Like any retail organisation, Oxfam regularly reviews its operation and we are currently conducting a review of our UK warehouse footprint across our three sites in Batley, Milton Keynes and Bicester.
“This is part of a routine cycle undertaken every three to five years and is considered standard business practice.”
Earlier this month, it began piloting an online clothes rental service focused on occasion wear for weddings and special events.
Fallon added: “Next month our shops, warehouses and digital hubs will be leading Second Hand September, our annual campaign to tackle fashion's environmental damage while raising funds for our global work on poverty and climate change.
“That is why we are not planning to close sites and instead are grasping the opportunities to innovate, such as our recently launched rental platform, the first of its kind for charities and our new shopping events on ebay Live.”
Oxfam recorded a £6.3m net profit from its 515 shops, warehouses and online retail teams in the year to March 2025, while other large charity retailers have struggled to break even.
In June, the UK’s largest charity retailer British Heart Foundation announced plans to close 150 of its 640 charity shops due to lack of financial sustainability.
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