BHF moves to close 150 of its UK stores amid change in consumer behaviour
Summary
The British Heart Foundation (BHF) has unveiled a major restructuring plan that will see it close around 150 of its charity shops across the UK over the next two financial years.
Details
The charity, was set up by a group of medics in 1961 who were dismayed by the lack of funding for cardiovascular research, has six retail sites in Gloucestershire, with two in the city, three in Cheltenham and one in Cirencester – but no specifics have as yet been given on the locations to be affected by this move.
The decision from the BHF is not isolated: Bernardo ‘s moved to close branches in May and a recognised shift in consumer behaviour, combined with rising operational costs, is causing the sector to rethink how and where it trades. Data from the Charity Retail Association shows there are some 10,800 charity shops active in the UK, turning over more than £1.4 billion annually.
The post 2008 rise of charity shops in Gloucester’s retail heart has become a headline story in retail revival, with many frontages being saved from closure and helping to maintain footfall thanks to the fact that their inventory comes from public donations and they enjoy an 80% discount on business rates.
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But today’s rapid rise of peer-to-peer marketplaces such as Vinted , Depop and eBay , means cash-strapped customers are sidestepping their visits to donate and buy from physical charity shops, opting instead to engage with the online “pre-loved” online sector to both save and make money.
The trend is one which the BHF has no choice but to accept – having already developed a strong digital dimension through its own site and eBay. Nationally, the BHF now has some 640 stores and it is understood that the cull will also entrain job cuts within BHF’s central teams and London head office.
Across the UK, the BHF employs some 4,545 staff, of which 3,700 work on the front line retail while this core team is supported by a network of 18,000 to 20,000 volunteers.
In a statement, the BHF said: “Today we have announced proposals to close around 150 of our shops and stores over the next two financial years to ensure our retail network remains commercially sustainable and continues to generate vital funds for lifesaving research.” The decision followed a detailed review of the BHF’s retail estate amid “rising operating costs and changing customer habits,” the charity added, which have rendered some of its shops and stores no longer financially sustainable.
Report source: Punchline Gloucester