In a time where the majority of people in society worry about money, and retail commercial property chains are forced into administration on practically a daily basis, it is good to see one particular genre of high street store is benefitting from the austerity measures in Britain.
Savvy shoppers have been turning to charity shop commercial properties, such as Oxfam, to find bargains in a range of products from clothing to books and DVDs. In fact, the bargain prices in the nationwide commercial property stores have attracted so many consumers that, this year, Oxfam has posted record takings, the majority of which are straight profits as so many of the items sold in store are donations.
The chain of commercial property stores have proven so popular in the past year that Oxfam recorded all-time high sales of almost £90 million over 12 months, part of which also came from contributions and sales made over its website. This beats the previous year’s posted sales by over £4 million.
In other words, the takings made by the commercial property chain amount to the equivalent of £250,000 worth of goods being sold by Oxfam stores in the UK every single day.
Additionally, the record sales mean that the charity can afford to put away £25.5 million into its coffers, amounting to a like for like sales increase of six per cent in a single year. This makes the chain one of the most successful in the UK currently, as well as ensuring their worldwide charitable programmes can afford to run and expand, helping the needy in countries such as India, China and many African nations.
The 700commercial properties stand in stark contrast to the majority on the high street, which, due to the economic situation in the UK, have posted falling sales and share prices consistently over the past few years. In fact, many well-known chains have been forced into administration or have had to sell out their brand to more successful groups, notably GAME, Aquascutum and Peacocks.
Researchers from the Bank of England believe that part of the reason for Oxfam’s success is the desire of families to save money in the current economic downfall. As the recession progresses, the banking chain’s monthly reports indicate that consumers will only shop in bargain commercial properties such as charity shops, or when high street chains run sales and promotions to help them grab a good deal.
However, there is another theory that goes a long way into explaining Oxfam’s recent success – one which focuses on the more moral side of commercial property retailing. Recently, company CEOs have been under scrutiny for their pay packets, especially following the case of Stephen Hester, who famously refused his annual bonus following the RBS banking group’s troubles and a subsequent media focus upon the case.
Marks and Spencer, who have recently posted their worst sales figures since the start of the recession, are one retail commercial property chain which may wish to take heed of the retailing lessons Oxfam have picked up on. CEO Marc Bolland earns an annual salary of £1.68 million for running the affairs of the high street chain, which, when compared to Oxfam chief executive Barbara Stocking’s modest pay packet of £105,943 per annum, seems ludicrously inflated given the state of Marks and Spencer’s economic affairs.
Given the fact that Oxfam are still receiving generous donations from consumers who visit the charity shops – clearly demonstrating that people still wish to help those less fortunate even as the general public’s disposable income drops further and further. Perhaps, should high street commercial property stores take on Oxfam’s approach towards ethical trading; their fortunes could change for the better.
Do you shop in charity stores as a means of saving money? Would the knowledge that your money is going towards helping people encourage you to spend more in a commercial property chain such as Oxfam or Help the Aged?
It’s not surprising that charity shops are prospering while other high street shops are forced to close. Charity shops are exempt from corporation tax, zero rated for VAT and get 80% business rate relief. perhaps if these burdens were reduced for all shops the picture on the high street would be brighter.
Good points Mathew. I wonder if these are mentioned in the Portas review?!