Background
There has been so much change within retail since 2000, with a considerable number of mainstream retailers that have closed. Most people can remember Woolworths, Debenhams, BHS, Austin Reed, Blockbuster, and there are so many more. There was a time when most towns had shoe shops, bookshops, and a range of different clothing shops however today it is far different.
The high street has evolved, and it will continue to evolve.
The Changing consumer shopping habits are the main reason for the changing in high streets, and this is driven by the growth of e-commerce. In 2023 E-Commerce accounted for over 26% of retail sales and this is going to continue to grow. Charity retail e-commerce is currently well behind mainstream retailers, in terms of sales and operation. Whilst all charity retailers are trying to upscale their e-commerce it is going to take time to embrace the technology and operational efficiencies that is required.
The changing consumer shopping habits have also affected charities. Until 2018 the number of charity shops had grown in numbers every year but since 2018 the numbers have reduced as some charities have closed unprofitable shops and some have even pulled out of charity retail completely.
There are six different strands that will determine the future of charity retail.
- Superstores
- Shops – Differentiation
- Modern E-Commerce
- People – Development of the retail team
- Appliance of The Advanced Science of Charity Retail
- Technology & Data
Superstores
- Superstore location is criticially important so getting specialist help is recommended.
- Have a full product range but scientifically use the retail space.
- Where possible make it a donation centre as well as a superstore.
- Net profit for each superstore should be over £100k.
Shops – Differentiation
- New goods are a risk and needs careful consideration.
- Ensure the right shop format is chosen.
- Ensure the correct use of retail space and the right pricing to ensure customer journey is optimised.
- Get specialist advice to optimise the customer journey.
Modern E-Commerce
- Remember modern E-Commerce is all about the generation of maximum profits.
- Automation and integration of as many operations as possible is criticially important.
- Always use operational best practices.
- Get specialist advice to modernise your e-commerce operation.
People – Development of the retail team
- Making your retail team your competitive advantage.
- Investing in developing people will be a key business strategy.
- Train shop teams on pricing of donations and the commercial use of retail space to deliver a good customer journey and improved sales.
- Consider using a professional external training company.
Technology & Data
- Integration of all aspects of e-commerce will become increasingly important.
- Sales data should be reviewed weekly and measured to best practice.
- Use technology to improve efficiency.
Appliance of The Advanced Science of Charity Retail
- Utilise the advanced science of charity retail across the whole retail business to generate considerable additional unrestricted income.
- Typically, the average additional unrestricted income when fully implemented is in excess of £10,000 a year per shop.
- Consider external expertise because the return on investment is considerable.
Summary
There are considerable opportunities to grow a charity retail business and the unrestricted income. It has become far more difficult today than in the past due to the changes within retail, however with the growth of online the opportunities are greater.
The key is to consider all of the top tips because there are a considerable amount of interdependencies.
