How do you find out of the true potential of a charity retail business?

The key is detailed analysis of all the key elements followed by a action plan to optimise the retail business to unlock its true potential, which in most cases it is considerably more than budget or expectation.

These are the key areas to review.

1. Donation value (£) by location and total donation value for the retail business, This is a complex calculation hardly used by many charities but it is very important. 

2. Checking that the shop format when compared against local competition and local demographics is ideal. Having the right shop format for the location and available donations is a good starting point. 

3. Reviewing the shop layout, the correct use of retail space based upon sales and most importantly the customer journey in each shop or online. The use of hot spots to drive sales in every shop should also be reviewed in detail. So often the shop layout looks great to the untrained eye but it is not optimised for sales and the effect on sales can be considerable. 

4.Checking that the online selling platforms are set up the industry best practice and the listings are using the right algorithms.  Also to check that the supply chain (available stock) is optimised and the distribution (sending out the sold items) is both highly efficient and to best practice. This combination has up to a 100% effect on sales performance. 

5. A detailed review of the donation pricing is consistent in each shop location and the true value of each item is reflected in the pricing for the shop format / shop location to optimise the financial return for the charity.   

6. Checking the capability of the retail team to optimise sales within a charity retail shop and have they had commercial award winning leading commercial training to ensure they have the skills to perform at the highest level.                                       

Summary                                                                                                                                                       

The key is to develop a implementation plan and then complete the plan.

There is a formula to optimise a charity retail business, and develop a successful plan but due to its complexity and high skill level most charity retail leaders don’t achieve it.   

A growing number of charities use Skyline to assist them to ‘UNLOCK THE TRUE POTENTIAL OF THEIR CHARITY RETAIL BUSINESS’ from identification, to development of a plan to implementation of the plan.