Charity shops sales remain steady after 2023’s record growth but online channels provide boost
Melanie May | 30 May 2024 | News
After record growth last year, charity shop sales remained steady in the first quarter of 2024, with like-for-like instore income growing by 0.8%, according to data from the Charity Retail Association. During the same period in 2023, the average transaction value increased by 4.2%.
Severe weather and reduced footfall during Q1 had an impact according to the Charity Retail Association’s Quarterly Market Analysis report, with 68% of respondents indicating that the weather had an adverse effect on their income levels, and 36% saying the same for reduced footfall. However, strong online sales boosted total charity shop income, as sales through online channels increased by 14.3% compared to January-March 2023.
50 charities took part in the CRA’s Q1 2024 Quarterly Market Analysis survey, representing 3,810 shops. Of these, 65% of charities reported that they sold online.
Advertisement
Commenting, Robin Osterley, Chief Executive of the Charity Retail Association said:
“Charity shops saw incredibly strong sales in 2023 which were always going to be difficult to replicate every year, but it’s reassuring to see that charity shops have maintained steady sales growth despite the challenges they have faced this quarter. We know that poor weather, the cost-of-living crisis, volunteer and staff shortages and the quality of donations are all issues that charity retailers are having to manage in recent months, so seeing an overall growth in total income of 2.9% compared to the same period last year is a positive sign, especially at a time when the broader commercial retail sector reported a drop in the growth of non-food sales.
“Over the past few years, charity shops have shown remarkable resilience, and this is reflected once again in their plans to open new stores, with nearly half of the respondents to our survey reporting that they’re planning to open new stores in the next 6 months. We’ve seen a particular increase in the popularity of boutiques and superstores, as charities continue to diversify and innovate to meet the changing needs of customers, and I look forward to seeing the exciting new changes that will take place in the sector over the coming months.”
The CRA also reports that the average transaction value in Q1 was £6.91, up from £6.63 in Q1 2023, and that the average transaction volume for the period was 74, compared to 75 in Q1 2023.
Clothing and accessories remained the most popular donated items sold in charity shops during Q1 of 2024, accounting for 63.6% of the total income generated from donated items. Bric-a-brac was the second most popular category at 13.6%, followed by furniture at 7%.
47% of charities reported that the volume of donations received had a positive impact on income, whilst 40% indicated that poor quality was negatively affecting their income.
According to the British Retail Consortium, non-food sales decreased by 1.9% between 25 February and 30 March this year.
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.