Keeping the high street alive

Transcription

1 Survey 2012 Keeping the high street alive The inexorable rise of the charity shop supported by

2 INTRODUCING TSP FM THE LOW COST AND SCALABLE WAY FOR YOU TO PROVIDE OUTSOURCED FACILITIES MANAGEMENT FOR YOUR RETAIL PORTFOLIO WORKING FOR OVER 150 CHARITIES AND OVER 1000 COMMERCIAL AND CORPORATE PROPERTIES, AT TSP OUR TEAM OF SPECIALISTS KNOW WHAT YOUR DAY TO DAY NEEDS ARE BENEFITS 50 per shop per month 250 on boarding fund Reactive maintenance only Unlimited calls to helpdesk Immediate support & guaranteed SLA s Unlimited impartial advice from experts Consistency of customer care response Scalable solution Call tracking & metrics Discounted services such as Health & Safety inspections and DDA compliancy surveys ADD-ONS Planned Maintenance - 50 per shop per month Ensuring key assets have an effective planned maintenance and inspection schedule Demonstrating statutory compliance tasks are undertaken Monitoring performance of M&E providers Provision of detailed reports on planned maintenance activities FOR FURTHER INFORMATION PLEASE CONTACT TSP: ZAC GOODMAN [email protected] TSP Charity Property Specialists

3 Sponsor s foreword Over the past year, charity shops have demonstrated once again their extraordinary ability to adapt and grow, despite challenging times for the high street. This is testament to the constant innovation of charity retailers demonstrated by the fact that those included in the 2012 Charity Shops Survey raised a record-breaking 175m last year. At a time when grants and other funding is being reduced, this ability to generate unrestricted income should be more important than ever to chief executives of UK charities with an eye on the bottom line. Charity shops have also been inventive in looking at new ways to address what is perhaps their biggest challenge donations. The Association s Choose Charity Shops campaign in May showed nearly 6,000 shops united in the task of generating stock. Increasing constraints on local authority budgets have created additional pressure in an already competitive environment, accelerating the trend to contract out textile banks and collections for profit. Yet new corporate partnerships, like the Shwopping campaign from Oxfam and Marks & Spencer, have demonstrated that we can find innovative new ways to generate donations. And smaller charities haven t been left behind, with examples such as Traid and the London Borough of Bexley piloting a textile collection service to around 8,000 households. There have been other welcome changes for the sector. The commitment by the government in its March Budget to simplify gift aid on donated goods, following a long campaign by the Charity Retail Association, has the potential to deliver significant savings. We have a great story to tell. On top of 17,000 jobs and 180,000 volunteers, charity shops reduce UK carbon emissions by around 3.7 million tonnes of CO 2 every year. They provide high-quality, low-cost goods for those feeling the brunt of the recession nearly 60 per cent of those on the lowest incomes shop in charity shops. Our members have had no problem in rising to the challenge to demonstrate their economic benefits, with shops helping to regenerate town centres and increase footfall up and down the country. Charity shops are truly social businesses: an asset on the high street. And despite challenges on the horizon, we have reason to remain optimistic. The longer I work with charity retailers, the more I realise what a confident, adaptable and resilient sector we are, ready to innovate and move with the times. I hope the next year brings the ongoing success that charity retailers deserve. Warren Alexander, CEO, Charity Retail Association Introduction Shop numbers Income and profit Volunteers Paid staff Rent Collection costs and rag Other findings Common concerns Competition Charity shops league table Price: 75 Additional copies may be ordered at civilsociety.co.uk/shop The Charity Shops Survey 2012 was compiled and written by Jonathan Last with additional analysis by Gareth Jones. Editor: Andrew Hind Published by Civil Society Media 15 Prescott Place, London SW4 6BS Telephone Fax civilsociety.co.uk [email protected] Design by RF Design Civil Society Media Limited 2012 The publishers, authors and printers cannot accept liability for errors or omissions. All rights reserved. No part of this publication may be reproduced in any form without the written permission of the publisher.

4 charity introduction Introduction Number of charities in survey 74 Number of shops in survey 6,233 Number of hospices / non-hospices in survey 36 / 38 Number of shops in chain As the global recession continues to claim more victims, the UK s charity retail sector is steadily going from strength to strength. In the 2012 Charity Shops Survey, published for the twentyfirst time by Charity Finance, in association with Fundraising, we can yet again report increases in both reported income and profits: 716.4m for the former and 175.1m for the latter, growth of 6.8 per cent and 14.3 per cent respectively on the previous year. The 74 charities reporting this year have cause to be very pleased with themselves. The same issues that have benefited the sector for the past four years since the fateful economic events of 2008 continue to fuel its rise in fortunes: commercial retailers closing, both removing competition and creating affordable properties in prime locations to take over; and unemployment producing more volunteer staff and enticing shoppers to spend more frugally. A charity shops boom like this must, of course, eventually slow, and there is evidence that at least one aspect that helps charity retailers thrive could be under threat. During the course of compiling this year s survey, we have heard anecdotal accounts of some local authorities challenging charity shops rates relief when the lease is held by the organisation s trading company. Since, these days, the majority of charities sell both donated stock and bought-in goods, this is becoming increasingly common. Rates relief is technically for charities, not trading companies, so this demonstrates another example of the importance of charities knowing how to structure their operations in order to take advantage of all the benefits their status brings. Certainly, the more revenue charities get from new goods, the more pressure there will be from the business lobby to have their rates reliefs removed. Along the same lines, we have heard that many charities are losing their 20 per cent discretionary rates relief as local authorities seek to save money in these difficult times. However, charities should not just accept this move as being out of their hands, since the Localism Act 2011 means that any charity which can successfully argue that it provides a local benefit can more often than not get this 20 per cent benefit restored. Mary Portas caused controversy in late 2011 with her review of the high street. The Charity Retail Association went as far as to write to the Prime Minister to object to the suggestion made by the retail guru that the number of charity shops on the high street should be limited the idea was subsequently dropped from her final report, but its initial inclusion demonstrates that an unwitting consequence of charity retailers success is that they are receiving more attention and therefore more scrutiny. The issue of charities getting rates relief while business start-ups do not was also raised by Portas. We are delighted to be able to include Save the Children in the this year for the first time since However, the charity was not able to provide full answers to our questionnaire and so, although it appears in the final league table, analysis in other sections of this supplement only includes Save the Children where we were able to verify the data. The typical charity shop (median figures by shop chain*) Non-hospice Hospice Floor space sq ft sq ft Rent per annum 18,000 14,599 Number of paid staff per shop Staff costs as % of turnover 35.3% 32.9% Number of volunteers per shop Weekly hours per volunteer Percentage donated goods Average weekly sales 1,698 2,004 Average weekly profit *Please note that other aggregate figures in the survey are calculated on a mean average basis 4 Charity Shops Survey 2012

5 shop numbers charity Shop numbers Total shops in survey It s been hard to ignore the rise in the number of charity shops on our high streets over the past few years, and this has been duly reflected in the 2012 survey s results. Despite 224 shops closing, a healthy 442 opened in their places to give a net increase of 218 up from last year, when an aggregate of 129 new shops opened their doors. There are a total of 6,233 shops in this year s report, the highest number recorded in the life of this survey. This is the ninth consecutive year that charity shop numbers have risen, and the fourth in a row that has seen a three-digit rise. This area has shown one of the sharpest increases in the whole survey, when Number of shops in chain Increase Ribbon cutters and shop shutters 6,233 (74 charities) Up from 6,007 at start of year Shop managers expectations: How do you expect your shop numbers to change over the coming year? you consider that 2007 and 2008 saw a mere 20 and 13 net openings respectively, before 2009 and 2010 produced an upward curve of 109, then 140 after that. Barnardo s has held onto top spot in this year s table of charities with the most net shop openings, even managing to surpass its 2011 figure of 50 to come in with a strong 57 more than 20 higher than the secondplaced entry, Sue Ryder. The British Heart Foundation which occupied top spot consistently between 1998 and 2010, except for one year comes third this time. Elsewhere, there are familiar names in the list with the exception of newcomer the Children s Society, which nudges Decrease Stay the same % 24% 6% % 10% 20% % 0% 10% % 12% 38% YMCA off. With plans to open a further 17 new shops in 2012/13, you can expect the Children s Society to hold a place in the table again next year. Age UK has carried on its policy of scaling down its operations, keeping first place for most net closures, although eight represents a significant deceleration from 2011 s 38. This year, however, the charity shares top spot. Cancer Research UK also had eight net closures, three less than its tally last year, when it shut 11 shops. In keeping with the trend of growth all through this year s survey, this year s top eight f or closures shut far fewer shops overall than we saw in 2011: 78 then, compared with only 24 this time. Reasons to believe that expansion will not be slowing down any time soon are reinforced by this year s shop managers expectations, which have generally held solid from 2011 over 70 per cent still expect to add to their portfolio. Again it is those managing 11 to 24 shops who are most confident (a whopping 90 per cent) and those overseeing 1 to 10 shops who are the least likely to grow; though 50 per cent of these still anticipate an increase in numbers. Most net openings Number of shops at end of year Most net closures Number of shops at end of year Barnardo s Age UK Sue Ryder Cancer Research UK British Heart Foundation Debra Salvation Army PDSA RSPCA Douglas Macmillan Hospice 1 15 Shaw Trust 9 50 Oxfam Shelter St Peter's Hospice 1 47 Children s Society 7 76 Scope Charity Shops Survey

6 charity income and profit Income and profit Total income 716.4m 6.8% increase Total profit 175.1m 14.3% increase Four years on from the banking crisis that landed the UK in its current state of recession, it s still rare that discussions about financial matters are not prefixed with the expression in this current economic climate, or variations thereof. This report cannot avoid doing the same, as it is truly remarkable how resilient the charity retail sector has been during this difficult period. Rates of annual profit growth were at a steady 4-7 per cent at the start of the recession, between 2008 and 2010, but then made a sharp upturn in 2011, rising 12.2 per cent from the previous year as the 75 charities in our survey reported an overall Profitability Top 20 non-hospices Profit margin % Dame Hannah Rogers Trust 57.1 Force Cancer Charity 51.2 Salvation Army 50.6 Break 47.2 Cancer Research Wales 43.9 Animals in Distress 43.5 Viva Arts & Community 42.2 RSPCA 37.9 Sailors Society 33.8 Oxfam 31.5 Cancer Research UK 30.5 Home-Start Teeside 29.0 Save the Children 25.9 Marie Curie Cancer Care 24.9 Oxfam Ireland 22.8 Children s Society 22.2 Barnardo s 21.8 British Red Cross 21.6 British Heart Foundation 20.7 Sue Ryder 20.7 profit of 153.1m. But this year has seen an even more pronounced rise in profit: a huge 14.3 per cent increase in total profit, weighing in at 175.1m and this from only 74 charities. Although total income has risen to 716.4m, a 6.8 per cent rise from 670.5m in 2011, the increase in costs from the ed was only 6.1 per cent, thus contributing to that substantial rise in profit. The top three charities in the league table ranked by income remains the same as last year: British Heart Foundation is top of the crop, with Oxfam and Cancer Research UK filling second and third berths Top 20 hospices Profit margin % Bolton Hospice 64.6 The Ayrshire Hospice 55.5 Iain Rennie Grove House 50.6 Douglas Macmillan Hospice 45.6 St Clare Hospice Care Trust 43.5 Katharine House, Adderbury 43.1 Hartlepool District Hospice 41.5 East Lancashire Hospice 41.2 Trinity Hospice 40.2 St Margaret s Somerset Hospice 39.6 Phyllis Tuckwell Hospice 38.6 Kirkwood Hospice 38.5 St Barnabas Hospices (Sussex) 37.2 Barnsley Hospice 36.5 Dorothy House Hospice Care 36.2 Ashgate Hospice, Chesterfield 36.2 Dove House Hospice 35.8 Northern Ireland Hospice Care 35.2 Rotherham Hospice 35.1 Arthur Rank Hospice 32.9 respectively. In fact the whole top 10 are identically-placed, save for PDSA and the Salvation Army, which swap places in ninth and tenth. In terms of the largest charities, the Salvation Army stands out for profit as a percentage of income, with a margin of 50.6 per cent. As in previous years, hospices are operating on average with higher profit percentages than other charities in the survey. Part of the reason for the rise in costs over the last 12 months can be attributed to increased salaries. Shop managers in the largest chains are earning more on average than they were in ,123 this year up from 14,225, a rise of 13.3 per cent (see pages 14-16). And this year charities spent an average of 11.6 per cent more on salaries than in 2011.Yet the healthy increase in income means staff costs as a percentage of turnover is slightly lower than it was last year, clocking in at 28.7 per cent as opposed to 29.8 per cent in Rent costs have stabilised, with only a negligible rise in the average from 19,826 to 19,966. However, in real terms this does evidence a downward pressure on rents, since this 0.7 per cent rise is far short of the 3 per cent rate of inflation. It seems that charities are still reaping the benefits of the slew of properties being available at highly competitive rates, a run that began with Woolworths in late 2008 and has shown little sign of slowing down so far. This year, the survey also reveals how many charities are using buildings that are rent-free, and since this amounts to more than a third of respondents, and 15 per cent of their properties on average, it can be said to have had an impact in keeping the overall rent figure down (see 6 Charity Shops Survey 2012

7 income and profit charity pages for more). Selling over the internet is on the increase. Many presentations at this year s Charity Retail Association conference focused on getting the most out of online selling, with charities such as Sue Ryder and Clic Sargent imparting the virtues of electronic enterprise. The main agent for these sales continues to be ebay, with the proportion of charities selling through it dropping only slightly to 68 per cent this year from 70 per cent in 2011, with a further 17 per cent considering making the move. As in 2011, a quarter are selling through alternative sites such as Amazon or ABE, but the number considering doing so has leapt from 5 per cent to 23 per cent. The number of charities selling from their own sites has dropped to 43 per cent after having been 51 per cent in 2010 (44 per cent last The current challenge is providing the supply of items to meet the demand. Francesca Winch, British Red Cross While the immediate future is bright, the longer term is more uncertain. Increased numbers of charity shops put ever-increasing pressure on stock, making sustainability in the current format questionable. Peter Foxton, Phyllis Tuckwell Hospice Number of charities achieving profit growth % percentage of charities Over 20% 10 20% 0 10% Decline Average income per shop per week vs. average profit 2,500 Average income 2,426 2,000 per shop per week 1,500 1,000 Average profit 500 per shop per week Year on year increase in profit % Do you claim gift aid on items sold? YES 81 NO 19 YES 73 NO 27 YES 49 NO 51 YES 33 NO 67 YES 16 NO Percentage Increase in income Top 20 Increase % Ashgate Hospice, Chesterfield 40.8 Children s Hospice Southwest 33.1 Northern Ireland Hospice Care 25.7 Claire House 23.7 Ty Hafan 22.6 Salvation Army 20.0 Dorothy House Hospice Care 19.6 Break 19.4 Trinity Hospice 18.6 Barnardo s 18.3 Phyllis Tuckwell Hospice 17.2 Princess Alice Hospice 17.2 St Barnabas Hospices (Sussex) 16.7 Oxfam Ireland 13.8 Sailors Society 13.7 Florence Nightingale Hospice Charity 13.4 British Heart Foundation 13.1 Kirkwood Hospice 12.3 All Aboard 12.2 Minds Matter 11.9 Charity Shops Survey

8 charity income and profit year), suggesting that more and more organisations believe that using third-party online selling platforms is the best way to sell their stock on the internet. Kay Ward acts as ebay coordinator at Clic Sargent and is full of praise for the website. You re open 24/7, can reach a worldwide market, there are very few overheads, she says. And pretty much everybody has heard of ebay. We sold our first item on it in December 2005 and over six years later we have now raised nearly 700,000 just from ebay alone. As predicted here last year, the number of charity chains utilising gift aid has increased again, from 73 per cent to 81 per cent this year. 27.8m was reclaimed in gift aid over the past year, compared with 21.9m the year before. Following publication of the government s Giving White Paper last year, we hope to see charities benefiting from a step-change in the giving of time, skills, resources and donations. This support is much needed as charity retail will continue to be a highly competitive market. Tricia Muir, Debra Gift aid income 8 Organisation Charity Shops Survey 2012 Gift aid reclaimed % donated goods sales gift aided British Heart Foundation 7,338, Oxfam 3,436, Barnardo s 2,896, Sue Ryder 2,840, Minds Matter 2,153, Age UK 1,745, PDSA 869, Scope 807, Debra 661, British Red Cross 592, Cancer Research UK 506, St Peter s Hospice 407, Marie Curie Cancer Care 314, Hartlepool District Hospice 312,061 Sense 301, Princess Alice Hospice 278, St Giles Hospice 181, St Margaret s Somerset Hospice 176, St Barnabas Hospices (Sussex) 160, Dorothy House Hospice Care 155, Trinity Hospice 129, Ty Hafan 124, Break 103, Shaw Trust 99, Dove House Hospice 97, Chest Heart and Stroke Scotland 92, Iain Rennie Grove House Hospice Care 71, Children s Hospice Southwest 68,371 Havens Hospice 67, Organisation Gift aid reclaimed % donated goods sales gift aided Shelter 67, Kirkwood Hospice 59, The Rowans Hospice 53, St Clare Hospice Care Trust 46, Queen Elizabeth s Foundation 49, Farleigh Hospice 47, Birmingham St Mary s Hospice 47, Katharine House Hospice, Adderbury 46, Douglas Macmillan Hospice 44, Claire House 42, Barnsley Hospice 38,481 Salvation Army 36,685 Oxfam Ireland 36, Ashgate Hospice, Chesterfield 33, Phyllis Tuckwell Hospice 33, Octavia Foundation Shops 31,720 Prince & Princess of Wales Hospice 22, Demelza House Children s Hospice 17, Florence Nightingale Hospice Charity 15, Earl Mountbatten Hospice 10, Cancer Research Wales 9,304 Bolton Hospice 4, All Aboard 4, Kemp Hospice 4, Children s Society 1, East Lancashire Hospice 1, Capability Scotland 1, Local Solutions Amount of gift aid reclaimed: 27,799,682

9 paid feature Why Charities need more than just Gift Aid Even though times are buoyant for charity retailers they are facing a wide range of challenges including: competition from high street retailers; managing and maintaining supporters; lack of, or stretched, IT resources; complexity of claiming gift aid on donated goods to name but a few. Many charity retailers, from smaller regional hospices to large national chains, are overcoming these challenges and flourishing thanks to the Cybertill retail system. A Guaranteed Way to Increase Gift Aid Revenues Cybertill offers a web-based integrated EPoS and gift aid system. Cybertill s latest development is a single bar code that captures a donor s details for gift aid whilst identifying the product and its price. This single scan bar code, called Advanced Gift Aid, is changing the way charities approach gift aid. Advanced Gift Aid enables 100 per cent accuracy on all gift aid sales, reduces complexity at Point of Sale and is increasing what charities claim in gift aid. Advanced Gift Aid enables you to speed up the process at the till, as all stock has a barcode attached. It means we never miss a gift aid sale, or have a price go through incorrectly, and nobody can change prices on the tickets, comments Marisa Haines, retail division manager of Dove House Hospice. It also has a knock on effect to other best practices. And from the volunteers point of view they absolutely love this, it so simple for them. Now, it s like playing shops, they are in Tesco s and zapping everything. It has increased our gift aid claims by over 15 per cent. Cybertill s Advanced Gift Aid enables 100 per cent accuracy on all gift aid sales and can increase a charity s gift aid claims by over 15 per cent. Cybertill also offers other key advantages: such as seamless integration with its ecommerce platform as well as an ebay integration module, allowing charities to click once in Cybertill and add products to their ebay and ecommerce stores. Cybertill has also introduced cards that have a unique barcode on which can be used as loyalty cards, gift cards, gift aid donor cards, supporter cards and much more by charities helping them increase loyalty amongst their supporters. Future developments planned for 2012 and early 2013 also include: Ability to print and manage lottery tickets from the till, Change 4 Charity which is an electronic charity collection box allowing customers to donate their change at the till point and online whilst also capturing gift aid, mobile donation stations on ipads plus many more features. The struggling economy is impacting on charity retail as in turn charities face greater competition from high street retailers and a decline in volume of quality donations. This coincides with many charity retailers moving to Cybertill so they can take advantage of its flexible charity system whilst allowing them to plan for the future and optimise their retail arm s performance. About Cybertill Around 1 in 3 charity shops in the UK use Cybertill. Cybertill s customers include national charities such as Cancer Research UK and British Red Cross to regional charities including St Peter s Hospice, Dove House Hospice, St Barnabas Hospices plus many, many more. For more information on Cybertill contact [email protected] or on Charity Shops Survey

10 charity income and profit Profit growth Charities achieving more than 10 Profit Increase per cent profit growth % Queen Elizabeth s Foundation 121, All Aboard 217, Trinity Hospice 1,341, Break 1,591, Ashgate Hospice, Chesterfield 379, Ty Hafan 603, Northern Ireland Hospice Care 767, Shaw Trust 323, Barnardo s 9,638, Minds Matter 2,326, Age UK 8,812, Sailors Society 85, Phyllis Tuckwell Hospice 557, Marie Curie Cancer Care 3,975, Oxfam Ireland 1,758, PDSA 2,453, Katharine House Hospice, Adderbury 300, Princess Alice Hospice 1,164, Scope 2,860, St Barnabas Hospices (Sussex) 760, Barnsley Hospice 348, British Red Cross 5,936, Extracare Charitable Trust 812, Birmingham St Mary s Hospice 249, St Clare Hospice Care Trust 525, St Margaret s Somerset Hospice 1,195, Debra 1,459, St Giles Hospice 754, Salvation Army 11,192, Dorothy House Hospice Care 1,073, Bolton Hospice 370, Kirkwood Hospice 667, Sue Ryder 7,561, The Ayrshire Hospice 369, Florence Nightingale Hospice Charity 202, It is our high street shops that seem to be taking the brunt of the recession, both in terms of sales and stock. Our out-of-town, village shops are still maintaining high levels of donations and custom. Wendy Everett, Florence Nightingale Hospice Charity Rag revenue being high has been a strength and a weakness for us yes we can command high revenue, though on the flip side it has caused textile companies to expand. Cathy Wright, Bolton Hospice High street retailing faces a big challenge from the explosion in online retailing on the one hand and the inconvenience of parking restrictions on the other. Ian French, Rotherham Hospice We are often resented when we should be applauded for keeping some high streets alive. We make them a vibrant part of the community as well as providing much-needed funds for our charities. Jenni Heavingham, Octavia Foundation Shops We need to retain customers through customer service, differentiation and linking buying to the feel-good factor of helping a (local) charity. Lynn Jones, Kemp Hospice Never forget that the customers have a choice, and they will choose based on price and service. Gary Thomas, Queen Elizabeth s Foundation 10 Charity Shops Survey 2012

11 paid feature Eproductive celebrates 10 years in the charity retail sector Eproductive is steeped in charity retailing. Founded by brothers Chris and Nick Cowls, Eproductive was one of the first companies in the UK to embrace cloud technology. From the start, shouldering the responsibility for hosting, storing and securing the lifeblood data of clients has given that all-important competitive edge. Nick Cowls, as well as several staff, worked in the charity retail sector for many years before Eproductive was even formed. The knowledge gained in running charity shops, combined with Eproductive s powerful technology has led to the development of innovative solutions that have benefited many charities to date. In 2006 Eproductive developed the pioneering EPR Gift Aid system devising a way to enable charity shops to claim Gift Aid on the sale of donated goods with launch client Sue Ryder. The scheme was highly successful and won a prestigious Third Sector Award for Enterprise in To date, the system has enabled 90 charity retailers to claim more than 75million in additional revenue. Following the success of the Retail Gift Aid scheme, the team has given unrivalled support to clients as well as developing purpose-built, easy-to-use systems for the sector to help manage other aspects of charity retailing, including takings & bankings, branch visits, new goods, document storage and space management. With so many charity shops now using their systems, Eproductive developed a free service to all charity retailers not just clients! The website enables users to search for charity shops and for charities to load news, volunteer vacancies and links to their own websites. Then came EPROS the EPOS till system designed specifically for charity retail, and already in use in hundreds of charity shops across the UK. Eproductive is now working with Barnardo s and Save the Children on EPR Team a major project which incorporates an HR and scheduling system with a powerful customised communication tool, based on social networking. Nick Cowls says: The last decade has been an exciting time in both charity retail and technology and the next ten years look to be even more so. Technology is evolving faster than ever and we are constantly finding innovative ways to support the diverse challenges and opportunities of the sector. For example we are currently developing solutions that incorporate social networking and mobile internet, but who knows what else the next decade will bring? Whatever it may be, we will continue to make sure that charity retailers can make the most of it! For more information on EPR Team, or to find out how else Eproductive could help your charity, contact [email protected] or The last 10 years in numbers 90 charity retail clients 3,500 charity shops listed on 75 million claimed by clients with EPR Gift Aid 4.5 million retail donors signed-up by clients Top 12 Gift Aid conversions two years running Over 10,000 staff and volunteers already on EPR Team Our 9,000 volunteers and 1,000 staff in Retail have been set up on the EPR Team system. We are using the system on a day-to-day basis to help us run our business in a more effective way. Our next step will be to integrate this information into mybarnardos, which we will then be able to use to communicate with them more effectively. Gerard Cousins, director of retail & trading, Barnardo s As our tills reached end of life, we talked to a number of EPOS providers, but EPROS was demonstrably the best choice for us. Rolling it out across all 450 shops has been a remarkably smooth and easy process. We are now discussing new opportunities for us including EPR Team. Steve Wooldridge, head of retail development, Age UK We have been working very closely with Eproductive on a new project called My Save the Children. We are already starting to see the amazing benefits this brings to our shops and volunteers and once complete, this product will revolutionise the charity sector. Jenny Webb, opportunity development manager, Save the Children Mycharityshop.com is a fantastic tool for charity retailers. Keeping directories up-to-date can be hard, especially when you are opening new shops, but the site is linked in to our EPR database which is simple to update. Jay Hogarty, head of retail & trading, Chest Heart & Stroke Scotland Eproductive is like an extra department within our retail team. Kevin Souter, retail development manager, Martlets Hospice Charity Shops Survey

12 charity volunteers Volunteers Total number of volunteers in survey 131,583 Of those, numbers working in: Shops 130,597 Collections and warehousing 506 Area, district or regional level 236 Head office 244 Volunteer numbers continue to grow, with the extra 6,500 recorded this year consistent with the upward trend seen in recent years. The number of volunteers per shop has also continued to rise, from last year to this year. Another figure that remains on an upward curve is the time per week volunteers are working, which breaks the six-hour mark for the first time. This milestone has driven the average time donated per week per shop to an extremely impressive 120-plus hours. Despite the results reported here, it seems that not having enough volunteers to keep up with their growth in shops is making shop managers more anxious than it has for years. In the list of greatest concerns (see page 26), shortage of volunteers has risen from the sixth place it held in 2011 to fourth position. Since it had gone down from first place in 2008, this represents a significant resurgence of what seemed to be a receding worry. A new charity this year has come out of nowhere to take the top spot for the number of weekly hours worked by its volunteers. Cancer Research Wales has stormed in with an impressive 20 hours per week Weekly hours Average weekly hours per volunteer: top charities Hours per week Cancer Research Wales 20.0 YMCA England 15.0 Local Solutions 12.0 All Aboard 10.0 Dame Hannah Rogers Trust 10.0 Sailors Society 10.0 Sue Ryder 9.8 Phyllis Tuckwell Hospice 9.0 Salvation Army 8.0 Scope 8.0 Minds Matter 8.0 Debra 8.0 Children s Society 8.0 Havens Hospice 8.0 PDSA 7.8 Katharine House Hospice, Adderbury 7.5 Ty Hafan 7.1 British Heart Foundation 7.0 Volunteer input Average volunteers per shop Average weekly hours per volunteer Average hours donated per week per shop Would you say the number of hours given per week by the average volunteer is: Decreasing Staying the same 20 Increasing Charity Shops Survey 2012 Would you say the length of time your shops volunteers remain with your charity is: 100 Decreasing Staying the same Increasing Due to the economic climate; more people will shop in charity shops, for affordable, good-quality items. Shops are the most visible piece of brand awareness that there is for any charity. Tricia Muir, Debra In the last week, two of our textile banks have been broken into and stock stolen, as such a high value is placed on rag. Sian Rees, St Peter s Hospice

13 volunteers charity Shop chains with the highest number of volunteers per shop Non-hospices Volunteers per shop Number of shops Hospices Volunteers per shop Force Cancer Charity Bolton Hospice Oxfam Demelza House Children's Hospice Cancer Research UK St Giles Hospice Children s Society St Clare Hospice Care Trust British Heart Foundation The Rowans Hospice PDSA Iain Rennie Grove House Hospice Care Cornwall Air Ambulance Trust The Ayrshire Hospice Cancer Research Wales Katharine House Hospice, Adderbury Chest Heart and Stroke Scotland Dorothy House Hospice Care British Red Cross Northern Ireland Hospice Care Extracare Charitable Trust Farleigh Hospice Barnardo s Kirkwood Hospice Sue Ryder Prince & Princess of Wales Hospice Break Princess Alice Hospice Queen Elizabeth s Foundation St Margaret s Somerset Hospice Oxfam Ireland Douglas Macmillan Hospice Viva Arts & Community Dove House Hospice Scope Hope House Children's Hospices Marie Curie Cancer Care Havens Hospice Age UK St Peter s Hospice Average (all respondents) 21.8 Average (all respondents) 23.1 Number of shops per volunteer, a full 33 per cent more than its nearest challenger, YMCA England, which itself is appearing in this table for the first time since There is no change at the top of the table for both non-hospices and hospices for the highest number of volunteers per shop. Hospice volunteers still work a higher average number of hours per week than their non-hospice equivalents, but the difference has narrowed slightly. Our contributors were generally optimistic about how long they can expect their volunteers to stay with them. More than 60 per cent think the length of time will stay the same, up from 55.8 per cent last year, and 18.2 per cent expect volunteers to remain for longer, a figure that was only 17.1 per cent in In 2011 non-hospices recorded an average of 16.6 volunteers per shop, versus this year s 21.8; and for hospices the respective figures are 24.4 then and 23.1 this time. So it seems that hospices are acheiving their income growth with the same number of volunteers, but nonhospices are having to recruit more help in order to cope. Charity shops will continue to flourish; however, we do need to try to become future-proof. Online sales and specialist shops are already on the increase and other areas will probably need to be explored. Scott Bloomfield, Katharine House Hospice, Adderbury There appears to be a trend towards local shopping and charity shops are well placed to benefit. Helen Sheppard, Marie Curie Cancer Care Charity Shops Survey

14 charity paid staff Paid staff Total staff numbers in shop operations 12,223 Of those, numbers working in: Shops 10, % Collections and warehousing % Area, district or regional level % Head office % Increasing pressure from cash for rags and rogue collectors will continue to affect charity retailing, as will the opportunities for individuals to sell their unwanted goods through online channels. Andrew Holl, PDSA After having dropped below 30 per cent for the first time since 2003 last year, salaries as a percentage of income continue their downward trend, reaching 28.7 per cent in this year s survey a drop from the 29.8 of The proportion of staff based on the shop floor appears to have plateaued, 86.7 per cent this year compared to 86.8 per cent in This is a change from 2010 to 2011, when the proportion rose (from 83.6 per cent). Staff in operations not based in shops make up the rest of the workforce, and are costing the industry proportionally less than they were last year; 23.6 per cent compared to 25.3 per cent. They account for 13.3 per cent of the total number of shop employees, nearly identical to 2011 s figure of 13.2 per cent. So it seems that, on the whole, shop chains are still employing the same number of non-shop-based staff, but are cutting down on the wage bill for them. It seems that shop managers are being rewarded more handsomely for their efforts than they have been in the past. For each category, the average annual salary has increased, most notably for chains of 100+ shops, where the figure has gone up from 14,225 last year to 16,123 this, a rise of 13.3 per cent. Fittingly, the number who said that they believe the quality of shop managers is improving has risen. In 2011 we reported that 46 per cent thought this now, the figure is 56.2 per cent; 32.9 per cent of respondents thought that the quality has remained the same; and, apart from one that said they were deteriorating, the rest were undecided. After years of decreasing, the percentage of chains which do not employ any paid shop managers has reached an all-time low: only one charity told us that they did not have any at all. This equates to 1.4 per cent, and is a further drop from the 5 per cent, 6 per cent and 10 per cent in previous years. Charity shops need to ensure they are anticipating the needs of customers and actively responding to the ways they shop. Customer service and engagement needs to become second nature charity shops must ensure that they are not just a shop but also part of the local community who they support and in turn are supported. Samantha Creedon, British Heart Foundation There are signs that landlords are hardening their stance after years of soft rents. John Canessa, Shaw Trust Well-run charity shops will continue to develop and will prosper significantly when the economy and then the quality of stock improves. Customers who have been attracted to strong charity shop operations during the downturn will stay with us for the long term, regardless of their personal prosperity, for the quality and value for money. Neil Fowler, Northern Ireland Hospice Care Average shops managers salary (pro rata to 35 hours per week) Number of Average salary (pro rata shops in chain to 35 hours per week) , , , ,406 Salaries as a percentage of income Support staff* as a percentage of total shop staff by salary costs by number of staff Charity Shops Survey 2012 * ie, staff in shops operations not based in shops, such as warehousing, collection of donated goods, regional management and head office.

15 paid staff charity Staff costs summary (ranked by salaries as a percentage of income) Organisation Number of paid staff (full-time equivalent) Total salary costs Average salary cost per paid staff member Average income per paid staff member Salaries as % of income Local Solutions ,659 11,659 19, Debra ,666,359 13,381 31, Viva Arts & Community ,545 15,030 35, Shaw Trust ,399,145 16,269 40, Birmingham St Mary's Hospice ,281 19,019 47, Chest Heart and Stroke Scotland ,470 12,343 30, Capability Scotland ,000 11,750 29, PDSA ,999,726 21,556 54, All Aboard ,704 20,803 52, Havens Hospice ,066 22,469 58, Kemp Hospice ,336 18,619 48, YMCA England ,317,652 17,340 44, Kirkwood Hospice ,836 21,341 55, Cornwall Air Ambulance Trust ,537 15,958 41, Extracare Charitable Trust ,822,459 13,703 36, St Peter's Hospice ,398,085 18,735 49, Rotherham Hospice ,307 12,131 32, Sailors' Society ,416 15,736 42, Children's Hospice Southwest ,950 19,264 52, The Rowans Hospice ,118 19,746 53, Ashgate Hospice, Chesterfield ,141 12,392 33, Sue Ryder 1, ,375,635 10,417 28, Shelter ,154,344 14,671 40, Farleigh Hospice ,623 21,501 59, Dove House Hospice ,061,453 18,921 52, The Children's Trust ,105 16,642 46, Barnsley Hospice ,888 14,691 41, British Red Cross ,736,547 17,703 50, Barnardo's ,611,393 16,416 46, Home-Start Teeside ,753 14,395 40, St Giles Hospice ,111 19,173 54, Minds Matter ,954,466 14,023 40, Queen Elizabeth's Foundation ,104 18,406 52, Break ,159,836 25,774 74, Scope ,982,614 13,599 39, Ty Hafan ,585 21,339 62, Charity Shops Survey

16 charity paid staff Staff costs summary (ranked by salaries as a percentage of income) Organisation Number of paid staff (full-time equivalent) Total salary costs Average salary cost per paid staff member Average income per paid staff member Salaries as % of income Demelza House Children's Hospice ,801 15,377 45, Force Cancer Charity ,031 23,008 67, Age UK ,662,190 15,901 46, Earl Mountbatten Hospice ,705 18,847 56, St Barnabas Hospices (Sussex) ,000 15,930 47, Animals in Distress ,577 8,643 25, Claire House ,837 14,088 42, Prince & Princess of Wales Hospice ,834 18,919 57, Princess Alice Hospice ,321,908 19,497 60, Hope House Children's Hospices ,949 16,365 51, Dorothy House Hospice Care ,925 15,847 49, Florence Nightingale Hospice Charity ,190 20,290 63, Phyllis Tuckwell Hospice ,827 16,808 53, Northern Ireland Hospice Care ,303 18,168 58, Hartlepool District Hospice ,964 17,281 55, St Margaret's Somerset Hospice ,180 20,352 65, Marie Curie Cancer Care ,913,222 16,004 51, Children's Society ,981,166 24,765 81, Katharine House Hospice, Adderbury ,973 16,156 53, Douglas Macmillan Hospice ,495 15,189 53, Trinity Hospice ,045 20,480 74, Iain Rennie Grove House Hospice Care ,653 24,994 93, Cancer Research UK ,141,609 20,152 76, St Clare Hospice Care Trust ,086 20,872 80, Arthur Rank Hospice ,911 10,978 42, The Ayrshire Hospice ,387 19,585 76, British Heart Foundation 2, ,790,574 18,381 73, Cancer Research Wales ,459 15,780 63, Oxfam Ireland ,847,000 28, , East Lancashire Hospice ,368 9,263 40, Salvation Army ,325,137 11,850 60, Oxfam ,962,247 22, , Bolton Hospice ,168 23, , Dame Hannah Rogers Trust ,007 11, , Charity Shops Survey 2012

17 rent charity Rent Average rent per shop 19,966 Average income per of rent 6.07 Average profit per of rent 1.48 Average rent per shop rose by 2-3 per cent between 2008 and 2010, but there was a negligible increase of just 100 between 2010 and This year s survey has similarly flatlined, with only a very small rise from 19,826 to 19,966 (0.7 per cent). The rising trend in average profit per of rent has also continued, with this year s figure of 1.48 following on from 1.22 last year, 1.15 in 2010 and 1.07 the year before that. As ever, we are seeing a wide range of rent paid per shop by our survey contributors from as high as 161,500 down to only 13 per anum. There has also been a significant change in the average income per of rent. After a jump from 5.22 in 2009 to 5.56 in 2010, the figure held steady at exactly the same amount the following year. But in 2012, it has jumped 9.2 per cent to reach Figures for shop space also make interesting reading. The proportion of larger shop units over 750 square feet remains identical to that in the 2011 survey, indicating that whether chains are adding to or removing shops from their portfolio, they aren t tending to increase the shop space for their individual units. But there is a significant difference in the proportion of shops of less than 500 square feet the combined figure of non-hospices and hospices has increased from 14 per cent last year to 21 per cent this year, indicating that smaller shops are becoming more common. In these difficult economic trading conditions, nonhospices are now operating more or less the same percentage of smaller shops as hospices. Last year s main rent table revealed that some charities have shops that they pay no rent for. A new question was added to the survey this year where charities could specifically indicate whether they had any shops that are rentfree. This has uncovered the statistic that 36 per cent of our respondents do, and the average proportion of shops that are rent-free turned out to be 15 per cent. The reason many are operating at least one rent-free property may be a consequence of recession-hit high street retailers trying to get their empty shops occupied by charities in order to avoid paying business rates. It is possible that charity shops will continue to play an important role on the high street by filling empty shops and keeping town centres alive. The danger however comes from landlords who continue to take an unrealistic stance on rents. Nick Morton, Salvation Army Shops with lease length remaining (years) Charities with rent-free shops Average rent per shop per annum ( ) 20,000 19,000 18,000 17,000 16,000 15,000 14, Shop sales area 19, % 4% 4% 21% 28% 41% 64% 36% sq. feet < >750 Non-hospices 20% 41% 39% Hospices 23% 44% 33% Total 21% 41% 38% Up to 1 year years 1-5 years 20 years years Freehold No Yes Charity Shops Survey

18 charity rent Rent summary (ranked by average rent per shop) Organisation Shops at year end Average rent per shop pa Minimum rent pa Maximum rent pa Total rent pa Income per rent Profit per rent Oxfam Ireland 50 44,776 11,255 65,000 2,238, Trinity Hospice 21 31,500 16,000 70, , British Heart Foundation ,547 8, ,750 20,239, Princess Alice Hospice 34 24,376 11,500 50, , Cancer Research UK ,018 6, ,500 13,305, Oxfam ,009 3, ,500 16,446, PDSA ,144 6,250 59,000 4,142, Sense 81 23,000 6,000 50,000 1,863, Children's Hospice Southwest 12 22,500 12,500 34, , All Aboard 17 22,240 12,000 40, , Capability Scotland 19 21,995 11,250 28, , St Clare Hospice Care Trust 7 21,836 15,000 28, , Hope House Children's Hospices 13 21,362 13,250 28, , Scope , ,500 4,981, Barnardo's ,052 3,500 68,000 9,765, Shaw Trust 50 20,000 9,000 47,250 1,000, Cancer Research Wales 4 20,000 10,948 26,876 80, YMCA England ,571 3,000 48,307 2,876, Salvation Army ,116 2,748 48,336 2,580, Dorothy House Hospice Care 22 19,100 4,750 47, , Marie Curie Cancer Care ,876 6,100 71,900 3,208, The Children's Trust 21 18,600 8,000 33, , St Giles Hospice 20 18,301 6,000 66, , Cornwall Air Ambulance Trust 7 18,000 6,500 32, , Local Solutions 1 18,000 18,000 18,000 18, Katharine House Hospice, Adderbury 6 17,651 8,928 30, , Extracare Charitable Trust 61 17,500 4,900 33,800 1,067, Iain Rennie Grove House Hospice Care 13 17,500 7,500 28, , Ty Hafan 20 17,500 7,400 30, , Queen Elizabeth's Foundation 12 17,169 9,000 33, , Phyllis Tuckwell Hospice 13 17,100 7,200 60, , Florence Nightingale Hospice Charity 7 17,050 10,620 26, , St Peter's Hospice 47 16,608 6,800 40, , Minds Matter , ,000 2,041, Farleigh Hospice 10 16,517 8,400 30, , Charity Shops Survey 2012

19 rent charity Organisation Shops at year end Average rent per shop pa Minimum rent pa Maximum rent pa Total rent pa Income per rent Profit per rent Age UK ,129 3,750 37,500 7,274, Shelter ,000 4,400 40,000 1,696, The Rowans Hospice 11 15,977 9,250 25, , British Red Cross , ,000 4,924, Earl Mountbatten Hospice 8 15,450 6,000 32, , St Margaret's Somerset Hospice 24 15,078 4,500 31, , Force Cancer Charity 1 15,000 15,000 15,000 15, Havens Hospice 16 14,949 11,000 24, , Debra ,682 4,500 47,500 1,703, Children's Society 76 14,667 3,750 35,500 1,114, Sue Ryder , ,503 5,647, Claire House 22 14,250 1,840 34, , Demelza House Children's Hospice 17 14,105 5,000 25, , Northern Ireland Hospice Care 23 13,846 3,000 25, , Dove House Hospice 31 13,297 4,000 24, , Ashgate Hospice, Chesterfield 10 13,000 4,000 27, , Sailors' Society 3 12,833 8,500 18,000 38, Prince & Princess of Wales Hospice 14 12,611 6,500 20, , RSPCA ,580 57,000 3,333, Birmingham St Mary's Hospice 9 12,336 6,500 22, , Kirkwood Hospice 17 11,523 3,000 26, , St Barnabas Hospices (Sussex) 17 11,452 5,000 28, , Dame Hannah Rogers Trust 6 11,292 5,000 18,000 67, East Lancashire Hospice 7 10,959 6,510 15,189 76, Break 43 10,830 4,254 20, , Barnsley Hospice 9 10,819 6,000 18,000 97, Rotherham Hospice 5 9,545 5,605 12,842 47, Douglas Macmillan Hospice 15 8,750 5,250 16, , Chest Heart and Stroke Scotland 23 8,699 5,000 15, , Kemp Hospice 4 8,426 6,381 10,825 33, Hartlepool District Hospice 7 7,856 2,250 15,000 54, The Ayrshire Hospice 6 7,767 6,903 9,200 46, Home-Start Teeside 4 7,600 6,000 11,000 30, Animals in Distress 9 6,750 4,120 10,000 60, Bolton Hospice 7 5,742 3,523 7,500 40, Charity Shops Survey

20 charity collection costs and rag Collection costs and rag The Last 12 months saw a rise in the median collection cost per of income from donated goods. Collection costs rose from 2.4p to 2.6p. However, rag sales as a percentage of total income have gone up from 8.2 per cent to 8.8 per cent. This reflects the increasing value of Median collection cost per of income 2.6p Median rag sales as % of total income 8.8% rag, with one contributor to the survey confessing that it has had to deal with repeated attempts to break into its textile banks, an unpleasant addition to the more conventional competition of commercial collectors. The top three charities for amount of income derived from donated goods have remained the same for the fourth year running. 20 Donated goods for sale Rag and surplus stock Organisation Income from donated goods Donated goods collection costs Collection costs p per income (exc. gift aid) Income from rag sales Rag income / total donated income % Kilos of rag generated British Heart Foundation 110,340,819 23,469, ,869, ,200,000 Oxfam 66,145,874 5,296, ,953, ,153,949 Cancer Research UK 54,559,361 1,338, ,837, Age UK 36,856,400 5,510, ,845, ,978,014 Barnardo's 34,966, , ,598, ,330,000 Sue Ryder 26,152,565 1,010, ,069, ,688,865 British Red Cross 23,180, , ,013, ,000,000 Scope 18,010,888 1,743, ,482, ,025,610 PDSA 15,046, , ,729, Marie Curie Cancer Care 13,260, , ,618, ,500,000 Salvation Army 11,382, , ,626, YMCA England 10,309,947 1,389, , ,326 Sense 8,336, , , ,375 Debra 7,204,500 78, , ,000 Minds Matter 6,526, , ,146, Shelter 6,398, , , ,372,210 Children's Society 5,511, , , ,087,503 St Peter's Hospice 5,220,506 85, , ,638 Oxfam Ireland 4,773,000 79, ,430, ,000,000 Extracare Charitable Trust 4,162, , , ,000 Princess Alice Hospice 3,510,032 33, , ,263 Shaw Trust 3,033, , ,000 Break 3,029,666 3, , Trinity Hospice 2,948, , Dorothy House Hospice Care 2,513,472 44, , ,153 St Margaret's Somerset Hospice 2,480, , , ,000 Dove House Hospice 2,461,871 44, , ,004 Octavia Foundation Shops 2,182, Charity Shops Survey 2012

21 collection costs and rag charity Donated goods for sale Rag and surplus stock Organisation Income from donated goods Donated goods collection costs Collection costs p per income (exc. gift aid) Income from rag sales Rag income / total donated income % Kilos of rag generated Northern Ireland Hospice Care 1,797, , ,000 St Giles Hospice 1,776,445 26, , ,978 All Aboard 1,766,839 59, , The Children's Trust 1,680, St Barnabas Hospices (Sussex) 1,666,029 19, , ,000 Ty Hafan 1,648,376 24, , ,000 Havens Hospice 1,473, , ,000 Kirkwood Hospice 1,400,767 5, , ,250 Hope House Children's Hospices 1,306,210 58, , ,518 Phyllis Tuckwell Hospice 1,283,473 19, , ,000 Douglas Macmillan Hospice 1,230,850 4, , ,098 Iain Rennie Grove House Hospice Care 1,230,722 4, , ,230 Claire House 1,202,899 18, , ,000 Chest Heart and Stroke Scotland 1,113, , Capability Scotland 1,031,682 29, , St Clare Hospice Care Trust 954, , ,000 The Rowans Hospice Trading Company 916,175 8, , Demelza House Children's Hospice 913,775 69, ,600 Ashgate Hospice, Chesterfield 893,491 67, Children's Hospice Southwest 867, , ,456 Prince & Princess of Wales Hospice 816,164 57, , ,000 Barnsley Hospice 784,947 93, ,788 Queen Elizabeth's Foundation 758,413 67, ,263 Farleigh Hospice 749, , ,500 Earl Mountbatten Hospice 728,980 10, , ,000 Birmingham St Mary's Hospice 597,200 15, , Katharine House Hospice, Adderbury 583,666 41, The Ayrshire Hospice 569,433 97, ,885 Florence Nightingale Hospice Charity 505,060 47, ,350 Bolton Hospice 435,872 11, , Cornwall Air Ambulance Trust 422,000 21, ,000 Cancer Research Wales 406,161 21, Animals in Distress 402,857 60, East Lancashire Hospice 317,816 25, ,000 Kemp Hospice 301,167 11, , ,000 Rotherham Hospice 263,800 1, , Force Cancer Charity 255,605 3, , ,000 Sailors' Society 251, Home Start Teeside 144,260 22, ,700 Arthur Rank Hospice 141,273 11, ,700 Viva Arts & Community 45,210 4, Hartlepool District Hospice 39,690 36, Local Solutions 18, Charity Shops Survey

22 charity other findings Other findings Overall income, excluding charities unable to provide full breakdown % of total Sales in shops of donated goods non-gift-aided items 419,722, % Sales in shops of donated goods eligible for gift aid 106,477, % Sales of surplus stock/rags 64,266, % Sale of other bought-in goods (ex VAT) 30,264, % Gift aid reclaimed or due to be reclaimed from items sold in this year 27,799, % Sale of primary purpose goods (ex VAT) 12,497, % Sale of Christmas cards (ex VAT) 10,082, % Cash donations at shops 9,631, % Online sales own website* 2,301, % Online sales third-party websites* 2,381, % Other income 8,332, % Notes on the data Many thanks to all the charities which took part in the survey. Where one or more charities have not provided information on a particular topic, they have either been excluded from those tables or charts, or a dash has been entered in the relevant data field. One-off costs, such as redundancy costs and the writing off of unexpired leases, if incurred by shop chains as a result of substantial downsizing, have been excluded where notified to give a clearer picture of the underlying trading situation. *Not included elsewhere Overall expenditure, excluding charities unable to provide full breakdown % of total All staff costs 203,579, % Shop rental 115,648, % Generation/collection of donated goods 46,593, % Depreciation costs 16,965, % All head-office costs related to shops (exc. staff costs above) 16,287, % Other property costs relating to shops 20,094, % Local authority uniform business rates 8,389, % Disposal of waste 5,707, % Cost: Primary purpose goods 10,100, % Cost: Christmas cards 4,140, % Cost: all other bought-in goods 17,782, % All other operating costs 61,317, % Number of shops able to take electronic payments 8% 92% Unable to take electronic payments Able to take electronic payments 22 It is difficult to see any major growth in the short to medium term but the same can be said of mainstream retailing, so in the current climate the future looks relatively healthy. Trevor Anderson, Oxfam Ireland Charity Shops Survey 2012 The sector has a strong future, with greater demand for service and quality goods, but the challenge of obtaining sufficient quantities of donated stock in a cost-effective manner will be one of the key drivers of success. Hugh Forde, Age UK We are attracting new customers, but this could be affected by poorquality donations. There will always be a customer base that uses and buys from charity shops however we need to reinvent ourselves to keep ahead of the market. Vanessa Gilding, The Rowans Hospice

23 other findings charity Christmas card sales: Top 20 charities ranked by Christmas card sales as percentage of total income Hope House Children s Hospices 8.6% Chest Heart and Stroke Scotland 7.1% Northern Ireland Hospice Care 6.9% Bolton Hospice 6.0% Arthur Rank Hospice 5.9% Rotherham Hospice 5.4% Minds Matter 5.4% Cancer Research UK 4.0% Iain Rennie Grove House Hospice Care 3.9% St Giles Hospice 3.4% Children s Society 3.3% Farleigh Hospice 2.7% Katharine House Hospice, Adderbury 2.5% Shelter 2.3% Florence Nightingale Hospice Charity 2.3% St Barnabas Hospices (Sussex) 2.2% Dorothy House Hospice Care 2.0% Claire House 1.9% St Margaret s Somerset Hospice 1.9% British Heart Foundation 1.8% Other bought in goods*: Top 20 charities ranked by income from bought in goods as percentage of total income Demelza House Children s Hospice 13.4% PDSA 11.6% Shelter 11.4% British Heart Foundation 9.4% St Clare Hospice Care Trust 8.8% Sense 7.9% Children s Hospice Southwest 7.7% Earl Mountbatten Hospice 7.3% Octavia Foundation Shops 7.2% Scope 5.7% Oxfam Ireland 5.5% Florence Nightingale Hospice Charity 5.4% Barnardo s 5.0% Age UK 5.0% Kirkwood Hospice 4.5% St Giles Hospice 4.4% Farleigh Hospice 4.1% Extracare Charitable Trust 3.9% Ashgate Hospice, Chesterfield 3.8% Birmingham St Mary s Hospice 3.7% *ex. Christmas cards and primary purpose goods Cash donations: Top 20 charities ranked by cash donations as percentage of total income Oxfam Ireland 6.2% Cancer Research UK 5.2% Ty Hafan 2.2% Claire House 2.2% Marie Curie Cancer Care 1.9% British Red Cross 1.8% Arthur Rank Hospice 1.7% Oxfam 1.6% Prince & Princess of Wales Hospice 1.6% St Margaret s Somerset Hospice 1.5% Barnardo s 1.5% Children s Hospice Southwest 1.5% Chest Heart and Stroke Scotland 1.4% St Barnabas Hospices (Sussex) 1.2% Northern Ireland Hospice Care 1.2% Sue Ryder 1.1% Demelza House Children s Hospice 1.1% Sailors Society 1.1% Dove House Hospice 1.0% Debra 0.9% Highest profit per shop per week For hospices with under 10 shops St Clare Hospice Care Trust 1,443 The Ayrshire Hospice 1,233 Bolton Hospice 1,082 For hospices with 10+ shops Trinity Hospice 1,192 Iain Rennie Grove House Hospice Care 1,121 Dorothy House Hospice Care 1,008 For non-hospices with under 10 shops Force Cancer Charity 2,767 Cancer Research Wales 956 Sailors Society 572 For non-hospices with shops All Aboard 265 Octavia Foundation Shops 261 Chest Heart and Stroke Scotland 233 For non-hospices with shops Break 744 Oxfam Ireland 678 Children s Society 394 For non-hospices with 100+ shops Salvation Army 1,725 British Heart Foundation 869 Oxfam 811 Highest volunteer contribution time Hours per shop per week For hospices with under 10 shops Bolton Hospice 237 For hospices with 10+ shops Iain Rennie Grove House Hospice Care 176 For non-hospices with under 10 shops Cancer Research Wales 455 For non-hospices with shops All Aboard 84 For non-hospices with shops Children s Society 232 For non-hospices with 100+ shops PDSA 213 Charity Shops Survey

24 charity title other findings Diversification Yes considering No Do you use online trading mechanisms? ebay Other Do you use your charity s own website to sell goods? Have you introduced a loyalty card scheme? Have you introduced gift cards? Do you act as a wholesaler to neighbouring small commercial retailers? Do you have specialist shops? Furniture Books Electrical Designer clothing Music/film Other Do you share the following with another charity shop chain? Charity Shops Survey 2012 Staff/volunteers 7 93 Shop sites 5 95 Sorting/warehousing 1 99 Collection activities 1 99 Rag disposal 4 96 Other

25 Charity-Finance-Ad-horizontal-print.indd 1 12/09/ :22 Charity Shops Survey

26 charity common concerns Common concerns figure 1: Greatest concerns Shortage of donated stock 75 Competition for donated stock from commercial collectors 74 Poor quality of donated stock 71 Shortage of volunteers 66 Local authorities interference 66 Shoplifting 63 Loss of rates relief 62 Cost of waste removal 61 Level of rag price 60 Loss of custom 58 Health and safety of staff 56 Increase in insurance costs 55 Employee fraud 55 Theft of donated stock/bogus collectors 55 Increase in staff costs 54 Health and safety of customers 53 Increase in costs of legislative compliance 51 Increase in rental costs 51 Threat of VAT on donated goods 51 Shortage of appropriate properties 47 Impact of minimum wage 30 Issues around donated stock have dominated the worries of charity shop management for years, and that trend did not cease this year. Top of the pile of the gross risk ranking is, as last year, a shortage of donated stock, although the lessening concern about commercial rivals has not stopped competition from this source coming second on the list, closely followed by the quality of the stock itself. Surprisingly, the loss of rates relief has fallen in the list of concerns (from fourth to seventh see figure 1), despite being in the news after the Business Rates Wales Review recommended that the Welsh and UK governments should consider tightening up rates relief in the charitable sector in Wales, including limiting relief to 50 per cent, from the current 80 per cent, for larger charity shops trading in new goods. However, loss of rates relief is ranked as one of the risks that charities feel least able to manage (see figure 2). Following a number of charities expressing a concern about the issue, and on the recommendation of the Charity Retail Association, the 2012 Charity Shops Survey questionnaire included a new option in the greatest concerns section: interference from local authorities. This covers the emerging trend for LAs beginning to charge rental fees for collection bins, marginalising charities in favour of private businesses, or simply renting the space out to such operations from the start. Including this issue proved pertinent, as with a gross risk ranking of 66 per cent it made joint fourth place in the table, alongside shortage of volunteers. 26 figure 2: Hardest concerns to manage Threat of VAT on donated goods 65 Loss of rates relief 57 Local authorities interference 54 Impact of minimum wage 51 Theft of donated stock/bogus collectors 46 Competition for donated stock from commercial collectors 45 Shoplifting 42 Increase in costs of legislative compliance 42 Cost of waste removal 37 Poor quality of donated stock 37 Increase in insurance costs 37 Shortage of appropriate properties 36 Shortage of volunteers 34 Employee fraud 32 Loss of custom 31 Level of rag price 31 Shortage of donated stock 31 Increase in staff costs 29 Increase in rental costs 28 Health and safety of staff 25 Health and safety of customers 23 Charity Shops Survey 2012 figure 3: Perceived capability of controlling concerns Shortage of donated stock Competition for stock from commercial collectors Poor quality of donated stock Shortage of volunteers Local authorities interference Shoplifting Loss of rates relief Cost of waste removal Level of rag price Loss of custom Health and safety of staff Increase in insurance costs Employee fraud Theft of donated stock/bogus collectors Increase in staff costs Health and safety of customers Increase in cost of legislative compliance Increase in rental costs Threat of VAT on donated goods Shortage of appropriate properties Impact of minimum wage Able to manage Unable to manage Concern rating (maximum 100) Charities were asked to rate a list of risks by how much each worries them (figure 1). They were then asked how well they feel they manage these risks (figure 2). Figure 3 displays both together.

27 competition charity Competition We are under more and more pressure from commercial organisations who buy second-hand clothes as well as the rogue operators of these businesses. Iain Somerville, Prince & Princess of Wales Hospice The impact of people turning their unwanted clothes etc. into cash has been minimal. However the growing number of cash for clothes outlets is something we should not underestimate in the future. Chris Sadler, Dove House Hospice Trade will be similar for the next five years but then a few key players will emerge to dominate the market. Heidi Travis, Sue Ryder We are strong on the high street but problems are lack of good-quality stock, too many charity shops and competition from discount commercial retailers. Victoria Tildesley, Douglas Macmillan Hospice No matter how well-controlled internally, there are so many external factors which contribute to the success, or not, of charity shops. And in an ever-increasingly competitive market the significance of these rises. Dawn Nearly, East Lancashire Hospice Charity shops should continue to perform well. We do, however, run the risk of saturating the market as everincreasing numbers of shops open. Colin Loy, The Ayrshire Hospice We are planning to increase by 50 per cent within the next two years. We feel that, as a local charity, we have something different to offer. Gary Hawkes, Farleigh Hospice Back in 2009, non-hospices and hospices alike saw discount commercial retailers as the biggest threat to their livelihoods. But in 2010, a new risk took over top spot and has remained there ever since. As the charity shop sector has grown stronger, charities have increasingly seen each other as their main competitor. Although there was a slight fall in the proportion feeling that way this year, it nevertheless seems that any inferiority charity retailers may have felt compared to their commercial competitors has been well and truly quashed. The fact that this year has seen a host of well-known names disappear from our high streets Game, Peacocks, Clinton Cards, Past Times and Thorntons are just some who have either significantly reduced in number or vanished altogether may even pave the way for charity shops to take a bigger share of the market. The perceived threat of highstreet-price commercial retailers has been dropping steadily for years, and this year it reaches an all-time low of 55 points for non-hospices and 51 for hospices. After holding firm in fourth in recent years, this threat has fallen to sixth in the list. Discount commercial retailers remain the second-largest perceived competitive threat and, interestingly, the figure for this is fixed on 69 per cent for hospices for the third time in four years. This suggests that the changing fortunes of commercial retailers make little difference to hospices, which are typically more isolated from the high street and situated in small communities. The extent of anxiety about competition has, on the whole, either dropped in points across the board or plateaued. In your own opinion, how significant are each of these competitors for charity shops? Other charity shops Discount commercial retailers Auction websites such as ebay 67 Car boot sales Commercial 53 second-hand shops 61 High-street-price 55 commercial retailers 51 Street markets Informal exchange of goods 47 between families and friends 44 Non hospices % Commercial gift shops 31 Hospices % 33 Non-hospices Hospices Concern rating (maximum 100) Charity Shops Survey

28 charity league table League table The 2012 charity shops league table ranked by income (2011 ranking in brackets) Organisation Year end date Shops at year end Increase/ (decrease) in shops Total income Year-on-year incr/(decr) income % Total costs * Year-on-year incr/(decr) costs % 1 British Heart Foundation (1) 31/3/ ,886, ,642, Oxfam (2) 31/3/ (1) 93,119, ,830, Cancer Research UK (3) 31/3/ (8) 69,304, ,182, Age UK (4) 31/3/ (8) 46,077, ,264,932 (4.8) 8 5 Barnardo s (5) 31/3/ ,279, ,640, Sue Ryder (6) 31/3/ ,613, ,051, British Red Cross (7) 31/12/ ,540, ,604, Scope (8) 31/3/ (1) 23,287, ,426,697 (1.7) 2 9 Salvation Army (10) 31/3/ ,114, ,922, PDSA (9) 31/12/ (2) 20,223, ,770,059 (0.7) 2 11 Marie Curie Cancer Care (11) 31/3/ ,936, ,960, RSPCA (12) 31/12/ ,950,000 8,667, Minds Matter (15) 31/3/ ,297, ,970, YMCA England (13) 31/3/ ,164, ,336, Sense (14) 31/3/ ,408, ,810, Shelter (16) 31/3/ ,697, ,204, Save the Children ( ) 31/12/ (4) 8,595,000 6,365, Debra (17) 31/12/ (2) 8,570, ,110, Oxfam Ireland (18) 31/3/ ,723, ,965, Children s Society (19) 31/3/ ,486, ,049, St Peter s Hospice (20) 31/3/12 47 (1) 6,319, ,517, Extracare Charitable Trust (22) 31/3/ ,793, ,981, Princess Alice Hospice (23) 31/3/ ,097, ,932, Shaw Trust (25) 31/3/ ,463, ,139, Break (26) 31/3/ ,374, ,782,266 (2.3) 1 26 Trinity Hospice (27) 31/3/ ,337, ,996,060 (0.1) 1 27 St Margaret s Somerset Hospice (29) 31/3/ ,019, ,824, Dorothy House Hospice Care (32) 31/3/ ,965, ,891, Dove House Hospice (28) 31/3/ ,928, ,878, St Giles Hospice (33) 31/3/ ,407, ,652, Octavia Foundation Shops (31) 31/3/ ,237,962 (13.6) 1,984,771 (12.3) 32 Northern Ireland Hospice Care (40) 31/3/ ,182, ,414, Ty Hafan (42) 31/3/ ,077, ,473, St Barnabas Hospices (Sussex) (38) 31/3/ ,042, ,282, All Aboard (39) 31/12/ ,953, ,735, Havens Hospice ( ) 31/3/ ,740,851 1,266, Kirkwood Hospice (43) 31/3/ ,734, ,066, The Children s Trust ( ) 31/3/ ,680,655 1,457,311 * Excludes exceptional costs ** Excludes income from rag see page 20 for more information on income from rag sales. *** Survey participant has indicated that the financial figures provided for the shops operation are reconcilable to charity s statutory accounts. T p 28 Charity Shops Survey 2012

29 league table charity year cr) % Total profit Year-on-year incr/(decr) profit % Profit as percentage of income Income per shop per week Profit per shop per week Average shop rent Staff costs as per cent of income Shops income as % of total income Donated goods as % total income ** Reconcilable to statutory accounts *** 31,243, , , ,289, , , ,122, , , ,812, , , ,638, , , ,561, , , ,936, , , ,860, , , ,192, ,409 1,725 19, ,453, , , ,975, , , ,283, , ,326, , , ,102 (10.3) 7.4 2, , ,597, , , ,564 (47.9) 5.7 1, , ,230, , , ,459, , , ,758, , , ,437, , , ,802, , , , , , ,164, , , , , , ,591, , , ,341, ,966 1,192 31, ,195, , , ,073, ,785 1,008 19, ,049,453 (14.6) , , , , , ,191 (22.4) , , , , , , , , , , , , , , , , , , , , , , Note: Save the Children participated in the 2012 Charity Shops Survey, but while it provided partial data for this table it has been excluded from the wider analysis due to the lack of full disclosure in its survey return. Note: indicates no figure because the charity did not participate in the 2011 survey, or did not disclose this particular figure. Charity Shops Survey

30 charity league table The 2012 charity shops league table ranked by income (2011 ranking in brackets) Organisation Year end date Shops at year end Increase/ (decrease) in shops Total income Year-on-year incr/(decr) income % Total costs * Year-on-year incr/(decr) costs % 39 Hope House Children s Hospices ( ) 31/12/ ,542,568 1,138, Douglas Macmillan Hospice ( ) 31/3/12 15 (1) 1,538, , Chest Heart and Stroke Scotland (46) 31/3/ ,486, ,216, Claire House (49) 31/3/ ,477, ,159, Phyllis Tuckwell Hospice (48) 31/3/ ,443, , Iain Rennie Grove House Hospice Care ( ) 31/3/ ,441, , St Clare Hospice Care Trust (51) 31/3/ ,207, , Capability Scotland ( ) 31/3/ ,185,197 1,228,433 ( 47 Demelza House Children s Hospice ( ) 30/9/ ,170,144 1,047, Children s Hospice Southwest (60) 31/12/ ,082, , The Rowans Hospice ( ) 31/3/ ,073, , Ashgate Hospice, Chesterfield (61) 31/3/ ,049, , Prince & Princess of Wales Hospice (58) 31/3/ , , Farleigh Hospice ( ) 31/3/ , , Barnsley Hospice (57) 31/3/ , ,829 (0.4) 54 Queen Elizabeth s Foundation (59) 31/3/ , ,751 (2.2) 55 Earl Mountbatten Hospice ( ) 31/3/ , , Birmingham St Mary s Hospice (62) 31/3/ , , Florence Nightingale Hospice Charity (67) 31/3/ , , Katharine House Hospice, Adderbury (66) 31/3/ , , The Ayrshire Hospice (65) 31/3/ , , Bolton Hospice (68) 31/3/ , , Animals in Distress ( ) 31/12/ , , Cornwall Air Ambulance Trust ( ) 31/12/ , , Cancer Research Wales ( ) 31/3/ , , Hartlepool District Hospice ( ) 31/3/ , , East Lancashire Hospice ( ) 30/3/ , , Kemp Hospice ( ) 31/3/ , , Rotherham Hospice ( ) 31/3/ , , Force Cancer Charity (71) 31/3/ , , Sailors Society (72) 31/12/ , , Dame Hannah Rogers Trust ( ) 31/3/ , , Home-Start Teeside ( ) 31/3/ , , Arthur Rank Hospice ( ) 30/6/ , , Viva Arts & Community ( ) 31/12/ ,047 30, Local Solutions ( ) 31/3/ ,067 46,787 ( Totals and weighted averages 6, ,394, ,293, T p * Excludes exceptional costs ** Excludes income from rag see page 20 for more information on income from rag sales. *** Survey participant has indicated that the financial figures provided for the shops operation are reconcilable to charity s statutory accounts. 30 Charity Shops Survey 2012

31 league table charity year cr) % Total profit Year-on-year incr/(decr) profit % Profit as percentage of income Income per shop per week Profit per shop per week Average shop rent Staff costs as per cent of income Shops income as % of total income Donated goods as % total income ** Reconcilable to statutory accounts *** 403, , , , , , ,378 (43.9) , , , , , , , , , ,214 1,121 17, , ,318 1,443 21, (43,236 ) (3.6) 1,264 (46) 21, , , , ,420 (27.6) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,222 1,233 7, , ,674 1,082 5, , , , , , , , , , , , , , , , , , , , , , , ,402 2,767 15, , , , , , , , , , , , (27,720 ) (145.4) 367 (533) 18, ,101, , , Note: indicates no figure because the charity did not participate in the 2011 survey, or did not disclose this particular figure. Charity Shops Survey

32 Want to know more about charity retailing? The Charity Retail Association is the only organisation dedicated to defending the interests of the entire charity retail sector, achieved through lobbying and public affairs. We also offer market research, independent consumer research and opportunities to save money and increase efficiency through networking, seminars, bulletins and other resources. We represent 80% of the sector Over 350 charity retailers have chosen us to represent their needs. They joined because they know we can help them achieve their main objective... improving the performance of their retail operation to raise money for their charity. Membership is open to any charity that operates shops, trades online or is interested in starting a retail operation. Find out today how membership could benefit your charity [email protected] Tel: charityretail.org.uk