The reasons why so many charities are reviewing their retail business
Many charities have enjoyed a retail sales boom since mid-2022 through to the end of 2023. Most charities understand the increased cost pressures of 2024 that include the large increases to the national living wage that could greatly impact profits. Therefore, it is not surprising that many charities are taking this opportunity to review their retail business to future proof the profit.
These are the most popular actions:
1. Evaluating their current retail business to future proof the profits.
This requires a thorough analysis of your existing retail performance and current retail strategy. This analysis should be very comprehensive and likely to take a few days. This includes assessing the performance of your physical stores, e-commerce operation, staffing, volunteering, operational costs, and the in-store customer journey.
2. Market Research to guide the retail strategy
Understanding the evolving charity retail and traditional retail trends plus most importantly most likely future customer preferences will help you make informed decisions about how to future proof your retail business
3. Review before investing in E-Commerce
Online is a growth area within charity retail so planning to invest in this is quite understandable. However due to the low profits most charities are having a detailed analysis carried out to check efficiency and develop a strategy to improve profits.
4. Review before any shop expansion
Ensuring all existing shops are performing to their optimum potential before expanding is highly recommended. Conducting feasibility studies to identify the most promising locations and by assessing the potential return on investment is recommended.
5. Reviewing the retail consistency
Consistency in branding, pricing, use of retail space, merchandising, in-store customer journeys, customer and donor experience are all crucial if optimum profits are to be achieved.
6. One solution does not fit everyone
There is no one size fits all when it comes to charity retail solution, because there are a broad range of interdependencies within charity retail plus the differences of the relevant local audiences to each the charity shop.
7. Always use a data driven and strategic approach
By using a data and strategic approach to reviewing a charity retail operation you will be able to make high quality informed decisions.
