Myth busting: What used clothing (‘rag’) merchants really do

Guest blog by Dawn Dungate of Dawn Dungate Consultancy

There’s a common misconception in charity retail about the role of used clothing – or ‘rag’ – merchants. Despite the name, they don’t deal in rags; they are crucial players in the reusable clothing market, similar to charities themselves.

For over 50 years, used clothing merchants have provided an essential service by collecting reusable clothing from charities. Their primary purpose is to sell these items in the global reuse markets. This practice has allowed merchants to pay for the collection of textiles from charities, making the process sustainable and financially viable.

However, the landscape has shifted significantly with the rise of fast fashion. In recent years, the quality of donated clothing has drastically decreased. According to industry reports, the volume of A-grade clothing, which is high-quality reusable clothing, has fallen by nearly 42% over the past decade. This decline is primarily due to the increase in low-cost, low-quality garments flooding the market.

In addition to clothing, used clothing merchants have traditionally collected and managed other donated items such as books, bric-a-brac, small electricals, and cardboard. These items used to hold financial value, contributing to the merchants’ ability to fund collection services. However, the introduction of low-value ranges and the oversupply of these items mean there is now little to no market for them. In some cases, these items have become a waste burden that merchants manage on behalf of charities, with no financial return. This additional waste burden incurs extra costs for the merchants, further straining their ability to provide free collection services.

Used clothing merchants also handle textile items that charities can’t sell, passing them on to wiper merchants, mechanical recyclers for creating fibrous materials used in linings or insulation, or upcycling markets. Unfortunately, the surge in lower-quality donations means there is more of this by-product which has flooded the existing infrastructure and less of the valuable A-grade clothing that can be resold.

Charities are now working harder than ever to process and sell stock, but the sheer volume of unsellable clothing has made it difficult for merchants to maintain their previous level of financial support. The traditional model, where used clothing merchants could fund their collection services through the sale of reusable clothing, is no longer sustainable due to the increase in unusable items.

For example, in 2023 alone, used clothing merchants reported a 43% increase in the collection of unsellable textiles. This surplus has significant cost implications, making it impossible to cover collection expenses through sales revenue alone. Similarly, the collection of books, bric-a-brac, and other items has become more of a waste service rather than a profitable venture.

It’s crucial for charities to understand these markets have changed and adapt accordingly. In recent years, there has been an increase of over 150% in collection and processing costs. This burden is now greater than ever, as the quality of collected items is so low that the financial model of the past is no longer sustainable for the future. By acknowledging these evolving dynamics and collaborating closely with used clothing merchants, charities can ensure a more sustainable and efficient textile recycling process. This will help maintain the valuable services provided by used clothing merchants and support the broader goals of reducing textile waste and promoting reuse.

As we move forward, it’s important to recognize the integral role used clothing merchants play in the clothing reuse ecosystem. Charities and merchants depend on each other, and understanding their challenges while working together will benefit both the charity sector and the environment. This collaborative approach is essential for maintaining a sustainable and efficient textile recycling process.

Dawn Dungate Consultancy is here to support the charity retail sector
Dawn Dungate is happy to offer her expertise and advice to any charity looking to manage their unsalable items sustainably. By working together, we can find solutions that prevent these items from becoming a financial burden and avoid reliance on the general waste model. Feel free to reach out for guidance on creating a sustainable future for your charity’s textile recycling efforts.

01/08/2024 12:55