In the latest Quarterly Market Analysis Report published by the Charity Retail Association today (2 March 2018), the period for October to December 2017 saw a small increase in like-for-like total income for the sector.
The report shows 1.7 per cent growth (including Gift Aid tax reclaims) from October-December 2016, but was down sharply on the corresponding quarter in 2016 (4.9 per cent growth). In addition, donated goods sales rose by 1.5 per cent on a like-for-like basis since Q4 2016, again down from the 3.6 per cent increase seen 12 months prior.
However, sales of new goods fell by 4.1 per cent between October-December 2017 and the same quarter of 2016, in contrast to a 7 per cent increase between the last quarter of 2015 and 2016. Some respondents mentioned that Christmas card sales were not as strong as expected.
In line with current trend, income from recyclers to charity shops was again strong, with a 19.2 per cent year-on-year increase. 58 per cent of respondents believe recycler prices will not increase; however, a larger proportion of charities said that the price received for rag will decrease again (14.3 per cent this quarter, as opposed to 8.8 per cent in July-September, and 4.4 per cent in Q1 2017).
CEO of the Charity Retail Association, Robin Osterley, said: “The latest analysis saw growth in most areas surveyed, albeit small. It is a tough time for the sector and retail in general, but consumers on the high street are turning to charity shops as an effective ethical low-cost alternative.
“Revenue from goods sold on to recyclers remains healthy but our members will remain cautious as ever with this income stream.”
Our members can download the full report and RAG price survey in the members’ section of this website.