Oxfam's retail profits fall 23% as charity shops face pressure

Summarised from 2 outlets · Updated 3 Nov, 11:56 · Archive

Oxfam's retail profits fell 23 per cent to £4.9m, squeezed by rising costs and online resale competition.

Oxfam's retail profits have fallen 23 per cent to £4.9m in the year to March 2026, down from £6.4m the previous year, according to unpublished accounts seen by The Financial Times. The decline comes despite UK spending on secondhand clothing quadrupling over the past decade to £8.8bn annually.

Charity retailers are facing mounting pressure from multiple sources. Rising rents, wage bills and the costs of collecting, sorting and storing items are squeezing margins. Consumers are increasingly selling unwanted clothing directly through online platforms such as Vinted rather than donating to shops. The rise of fast fashion has also affected the quality of donated stock.

Oxfam has confirmed it has no plans to reduce its store estate, citing the strength of its books and music offering. This contradicts reports in September that the charity was considering closing up to 100 of its 500-plus UK outlets. Other major charity retailers are also struggling. The British Heart Foundation, which operates the UK's largest charity shop estate, has reported a £3.3m loss and is planning to close 150 stores by March 2028, with its Abingdon store expected to shut on November 21. Cancer Research UK and Scope have also been reducing their store estates, with Cancer Research UK expected to shut 190 stores.

Oxfam's retail profits fall 23% as charity shops face pressure — Image: Oxfordshire Guardian

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How it is being reported

UK charity shop announcement on closures after profits slashedOxfam's retail profits have fallen 23 per cent due to mounting pressure from rising costs, declining donations and the growing popularity of VintedOxfordshire Guardian · 3 Nov, 11:12
UK charity shop announcement on closures after profits slashedOxfam's retail profits have fallen 23 per cent due to mounting pressure from rising costs, declining donations and the growing popularity of VintedOxford Mail · 3 Nov, 11:10

In this story: Oxfam · British Heart Foundation · Cancer Research UK · Scope · Vinted · Oxford

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