Thrift 2.0: Can Charity Shops Survive the Digital Shift?

Posted 3 weeks ago by Tejan Pereira

Think of a ‘classic’ British high street and what comes to mind? A pub? A café, independent or part of a chain? Perhaps a (mini) supermarket or convenience store… maybe a shop selling quirky trinkets… and, of course, the ever-present charity shop.

Wind back to 1937, and one of the first modern charity shops was set up at Edinburgh University and known as ‘Everybody’s Thrift Shop.’ It drew huge crowds, with people queuing for hours before opening and even required police to manage the crowds and prevent shopkeepers from being overwhelmed. Not quite the scene we’re used to outside our local Oxfam.

Still, the idea was an instant success. Since the 1930s, the charity shop has become a fixture of high streets up and down the country. Today, more than 11,200 such shops operate across the UK. They not only help fund charitable causes but also play a vital community role, often doubling as informal community centres where people connect, volunteer, and develop new skills.

But while charity shops have long held their place on the high street, they’re now facing an unprecedented challenge: the digital revolution in second-hand shopping. As a sign of the mounting pressure on the sector, more than 1,000 charity shops have closed in UK between 2020 and 2023.

Over the past decade, platforms like Depop, Vinted, and Facebook Marketplace have transformed the way people buy and sell second-hand goods. These “peer-to-peer” apps offer convenience, personalisation, and direct profit, especially appealing to a generation that is environmentally conscious, economically strained, and digitally literate.

What was once the domain of the charity shop has increasingly shifted online. Buyers can now search for exactly what they want – often at prices comparable to those in local charity shops – while sellers are able to make money from items they might previously have donated, all from the comfort of their own bedroom.

Robin Osterley, Chief Executive of the Charity Retail Association (CRA), takes this further, suggesting that the rise of online marketplaces has not only reduced demand and stock for charity shops but has also affected the quality of donations. “Where people used to keep one back in their bedroom for the charity,” he notes, “now they might have two [one that’s worth selling and one for the charity shop].

These platforms are also winning on convenience. Courier services like Evri, coupled with an expanding network of parcel lockers and drop-off points in convenience stores, mean that sending and receiving second-hand clothing is quicker and more flexible than ever. For many, this level of convenience far outweighs the experience of visiting a charity shop, which can involve navigating restricted opening hours and uncertainty over what items are accepted. 

In response to these shifting habits, many charity shops have begun to modernise their approach. Larger organisations like Oxfam, British Heart Foundation, and Cancer Research UK have launched their own online shops and run successful stores on eBay and Depop. 

Other charities have started investing in social media to reach younger audiences. The Emmaus Charity (a charity that helps people to progress after homelessness) runs a range of location-specific Instagram and TikTok accounts promoting interesting and beautiful finds from their charity shops.

Some charities have also been exploring click-and-collect or local delivery models. The Salvation Army has piloted partnerships with delivery services to make it easier to sell large furniture items, while Cancer Research UK has experimented with local pickup models via an online platform. While many of these efforts are still in their infancy, they reflect a clear understanding: for charity shops to remain relevant, they must evolve alongside consumer expectations for convenience. (Remember what we discussed last month!)

Yet while digital platforms offer ease and speed, they often lack the warmth and community connection that physical charity shops have fostered for nearly a century. These spaces are more than retail outlets, they are places where people meet, volunteer, and build relationships.

This isn’t the first time a societal shift has created unexpected winners and losers. Just as the indoor smoking ban hurt dry cleaners or remote working affected city-centre sandwich shops, the digitisation of second-hand shopping is having knock-on effects that few would have foreseen. The convenience and earning potential of peer-to-peer apps may not have been designed to undermine the charity shop, but it has. 

Still, this economic disruption doesn’t have to mean defeat. By leading with their human element  – while also embracing e-commerce, digital marketing, and local delivery services – charity shops can strike a balance between tradition and innovation. In doing so, they can offer a hybrid model that meets the needs of environmentally conscious, convenience-first shoppers who seek both value and social impact, ensuring their relevance and a place on our high streets for years to come.

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