Charity shop chic: how to drive sales in a charity shop

Retail fundraising ideas to drive sales in a charity shop

There is no one right recipe, but if you are looking for some retail fundraising ideas, you need to think…

• Research: A business like any other, it’s important to do some market research. Look at other charity shops and retailers. Talk to the people that use them. Don’t recreate the wheel. Find out what works – and what doesn’t – and use this as a starting point for success. 

• Donation generation: Charity shops survive on donations, and you need to make sure you have thought about how to generate yours. We are all familiar with charity shop bags and drop-points, but there are other ways too. We love that the British Heart Foundation partner with universities to encourage donations from students as they leave their halls of residence. And don’t forget the power of community groups, schools and small businesses. Not everyone has the money to make a cash donation, that makes retail fundraising a great way to give without busting the budget. 

• Type of goods: Clothes aren’t the only item you have to sell. Oxfam Bookshops and British Heart Foundation ‘Furniture & Electrical’ stores are strong chains, and known for selling quality merchandise at an affordable price. The boom in second-hand books is particularly newsworthy, with some second-hand charity retailers even outselling commercial stores! 

• Quality goods: They don’t all have to be designer names, but they do need to be good quality. No-one wants to buy a jumper with bobbles, or a top with a hole in. Set a good standard and you’ll build a good reputation. You could even single out high-value items and sell them in separate boutique. Did you know that Oxfam has Designer stores and specialist Wedding shops? They’re great places to bag a branded bargain.

• Window displays: These serve two purposes. Firstly, a good window display is one of the best ways to entice people into your store. It will be simple, bold, balanced and creative – with a focal point that turns heads and grabs the attention of passers-by (thanks for the insight, Shopify!). It is also a beacon for your brand. A great way to reach beyond your normal audience demographic.

• Shopper experience: Shopping is a leisure activity, a time to be enjoyed with friends. Think about how your charity shop can play into this. Don’t pack it so full of goods, people can hardly move. Think about the layout and flow of your store. Ask yourself how you are going to display and organise goods so that they are accessible. Will you have music playing in the background? Can you create mini-displays that draw people to specific items? Have you thought about how your store is decorated, looks and smells? Appeal to the senses, and make charity shopping an experience people want to repeat. 

NB: Not all charity shops are in physical buildings. In fact, many charities have online shops as well as physical ones, whilst others are online only. Whichever retail fundraising methodology you choose, make shopper experience an integral part of your business plan.

• Customer service: Most charity shops are staffed by volunteers. It’s a great way to get people engaged with your cause - as well as giving valuable work and professional experience. Invest in your staff. Make sure they are well trained, not just in sales, but in the work that you do. Not only will this help create a great customer experience, it will make your volunteers feel valued. They are giving their time for free, and that gift should be recognised just like any other.

• Make it a place to donate: Just because you’re retail based, doesn’t mean you shouldn’t give people the option to donate. As the CRA’s report ‘Giving Something Back’shows us, charity shops help raise awareness for important issues and causes. They also encourage public giving (yes, your charity can claim Gift Aid on donated goods) and deliver information on local services, benefits and events. A strategically placed cash or contactless donation point is a great way to raise extra funds. You could even upsell events and activities – think raffle tickets, marathon spaces and coffee mornings. Your store is a hub, an important contact-point for people who want to get involved with your work.

• Cross-channel campaigns: Retail business isn’t just about footfall. There are lots of things you can do to raise the profile of your charity shop store, encourage donations and shopping trips. Second-hand September is a great example of this. A cross channel campaign, shoppers are asked to buy second hand for 30 days or more. With tips and challenges, social media resources and an active campaign hashtag, 62,000 people signed up in its first year. Not bad for a non-financial ask! 

• Data: You might not always have the chance, but where you can make sure you catch people’s data and integrate this into your broader management systems. Do you have a regular shop donor who is Gift Aid registered? Great! There’s no reason why you can’t keep them updated on the amount their goods have raised, or invite them to donate to a new campaign or initiative (GDPR consent pending, of course).

Remember, it takes money to make money

As this shows us, retail fundraising isn’t a quick fix. It’s a business venture. You need to choose your location wisely, and do your homework before you let out that shopping space. The cost of running a charity shop can be quite considerable - with NCVO seeing 60-80% of a store’s annual turnover go on running costs. There are some who might query this return. But it is important to remember that the funds raised through charity shop giving are unrestricted. Gold dust when it comes to charitable income. If you want your shop to succeed, you must be prepared to invest in its success.

Want to find out more about charity shop rules and regulations? The CRA is a great place to start.

Don’t forget the hidden value

It’s also important to remember that charity shops are about more than direct sales. The CRA counts 234,000 store volunteers nationwide. The benefits of such opportunities are well known, and with 25% of volunteers looking for paid work, shop placements can help people build the confidence and skills they need to get there.

Then there’s the environment. According to the CRA, 95% of clothes received by charity shops are either recycled or reused. In 2015/16 this diverted 331,000 tonnes of textiles from landfill sites - reducing carbon dioxide emissions by an estimated 6.9 million tonnes. That’s quite an impact, especially given that the average UK person emits 9.84 tonnes of CO₂ a year.

So there you have it. A carbon-busting, profile-raising, socially valuable source of charitable income. Next time you pass your local charity shop, why not pop-in and take a look?

Speak to one of our Not for profit specialists to find out how you can use Access Charity CRM to meet your charities needs