Strong returns for charity shops

26 Aug 2008 News

Charity shops have enjoyed a strong year with profits up by 7.4 per cent, according to the findings of the Charity Finance Charity Shops Survey 2008. The income of the 72 charities in the sample rose by 5.7 per cent to £534.3m, and although costs increased by 5.3 per cent, total profits were up to £106.7m. Average profit per shop per week rose from £350 to £370.

Charity shops have enjoyed a strong year with profits up by 7.4 per cent, according to the findings of the Charity Finance Charity Shops Survey 2008, which will be published next week.

The income of the 72 charities in the sample rose by 5.7 per cent to £534.3m, and although costs increased by 5.3 per cent, total profits were up to £106.7m. Average profit per shop per week rose from £350 to £370.

Oxfam extended its lead at the top of the league table thanks to a 5.1 per cent increase in profit to £21.1m, while Cancer Research UK held on to second place with a 1.2 per cent increase.

This was despite British Heart Foundation closing the gap in third, up 14.2 per cent, while the Salvation Army Trading Company in fourth position had an outstanding year, increasing its profits by 63.6 per cent to £6.2m.

The survey, sponsored by BDO Stoy Hayward and in association with Professional Fundraising, is in its seventeenth year and covers the latest results from charity shops chains with a total of 5,591 shops.

Ian Allsop, editor of Charity Finance, said: “Though the results largely cover the period before the economic conditions started to worsen, it is nevertheless heartening to see that they had a good year.

“While there was no consensus among respondents as to how any economic slowdown may affect the sector, at least they can face these challenges from a position of financial health.”

Reasonable year

David Moir, head of policy and public affairs at the Association of Charity Shops, said charity shops have had a “reasonable” year, but warned that the real test is yet to come.

“Trading conditions, as for all retailing, are now extremely tough. However, evidence from previous slowdowns is that charity shops are well placed to weather economic storms as cash-strapped consumers turn to them for value for money.

“If charity shops continue to respond to consumer needs, then they are well-placed to come out of this downturn in a good position.”

The Charity Shops Survey is free to subscribers of Charity Finance with the September issue or may be purchased individually. For more details ring 020 7819 1200.