Oxfam Shop Profit Falls 23% as Online Rivals Resale Market

Oxfam's retail profit fell 23% to £4.9m last financial year, down from £6.4m, as online secondhand platforms and rising costs squeeze the UK's charity shop sector. The figures come from unpublished accounts seen by the Financial Times.

The British Heart Foundation (BHF), which runs the biggest high street presence of any UK charity, plans to close 150 stores after its shops made a £3.3m loss. Cancer Research UK and Scope have also closed, or are closing, some of their shops.

The decline comes despite UK spending on secondhand clothing quadrupling over the past decade to £8.8bn a year, according to GlobalData. The growth has largely gone to platforms such as Vinted and Depop, which let people sell donated-worthy clothes directly to other consumers and keep the profit themselves.

Lorna Fallon, head of Oxfam's retail operation, told the Financial Times: "It has been challenging … and it is going to be painful for the sector."

Chinese companies are also selling more clothes in developing countries, particularly in Africa, which has long been a major market for unwanted UK secondhand clothing.

How bad are the numbers?

Oxfam's latest filings show that for every £100 spent in its shops, just £6 now funds the charity's global poverty work. As recently as 2022, that figure was £22. Oxfam's focus on books and music means it has no plans to cut its number of shops.

BHF reviewed its retail arm in June after shop profits plunged from £18.8m in 2024 to £3.6m in the year to 31 March 2025. The operation employs almost 3,700 staff. The charity cited "an exceptionally challenging trading environment" and plans to close 90 stores by the end of March 2027, with another 60 to follow by March 2028.

Unlike Vinted and Depop, charity shops carry high street and warehouse rents plus the costs of collecting, sorting, pricing and storing clothes.

What's dragging down donations?

The clothes arriving at shop doors are also getting worse. Tansy Hoskins, author of Charity Shop World, told the Guardian the sector faces "avalanches" of poor-quality clothes as people treat charity shops as dumping grounds.

"Quality is the big change marker – it's gone through the floor. You're just fighting against the waste," Hoskins said.

Robin Osterley, chief executive of the Charity Retail Association, agreed: "Fast fashion has had an impact on donations quality, there's no question about that."

But Osterley rejected the idea that Vinted is the problem. "We don't see Vinted or any of the other online platforms as an issue at all," he said, arguing the platforms normalise secondhand shopping — "a rising tide floats all ships" — and that many resellers source stock from charity shops, generating significant member income.

What does the budget have to do with it?

Osterley pointed instead to the November 2024 budget, which raised national insurance and lowered the threshold, hitting part-time staff. He called the effect on charity shop costs "really significant", alongside broader inflationary pressures.

Richard Hawkes, Oxfam GB's chief executive, said the sector has been "impacted by the cost-of-living crisis, like the rest of the high street", but that the growth of secondhand "presents real opportunities" while forcing a rethink of the traditional charity retail model.

"Our shops also offer much more than just an income," Hawkes said. "They give us a presence in communities where we might not otherwise be, while providing opportunities to engage with more than 20,000 volunteers."

With £8.8bn now flowing through the secondhand market and charity chains capturing a shrinking share, the sector's fundraising model depends on whether it can adapt faster than it closes stores.