Are there too many charity shops?

Totnes town centre has one cobbler, one green grocer, two flower shops, three butchers, four independent book shops, six pubs, eight hairdressers, 11 gift shops, 24 clothes shops, 27 cafes or restaurants and 10 charity shops.

The Numbers

There is a total of 224 trading units in the town centre. Some people think that the number of ‘charies’ is excessive and poses a threat to the vitality of the town. Others believe that charity shops are an important part of the retail mix and add to the appeal of Totnes as a shopping destination. The evidence in support of either assertion is mixed.

There is no doubt that for much of the year High Street and Fore Street have a vibrant feel. In spite of high car parking charges and the dangers posed by through traffic on shopping streets, many people visit Totnes for the shopping experience. The 27 cafes and restaurants, some of which are the longest established businesses in Totnes depend largely on people who come to shop.

Second Hand

Although the High Street appears lively, and compared to many high streets nationally, it is thriving, there are signs that the retail economy is not as strong as all that. There are 11 vacant shop premises. Two premises have been converted to non-retail uses. At least five shops currently trading, are for sale.

Some traders believe that charity shops have an unfair advantage. Charity shops have lower staffing costs because they rely on volunteers. Charities can avoid paying tax on profits from goods donated to the charity. These sales are also exempt from VAT. Charities can get up to 80% relief on business rates. Most sales in charity shops are of donated goods which are not in direct competition with commercial traders. Increasingly charity shops sell newly bought-in items such as greetings cards and clothing. Some of these sales clearly undercut commercial traders and may impact on their profitability.

Competitive

There have been reports of two charities competitively bidding for premises, potentially driving up rents. One trader has been affected by the neighbouring charity shop failing to maintain its premises and allowing the shop to appear run down.

On the Thrift Shop Plus Side

The charity sector maintains that there are many benefits arising from retail outlets. They encourage the re-use of clothing and goods that might otherwise be thrown away. They provide significant social benefits to the community by supporting and encouraging volunteering. They help people in challenging financial circumstances to acquire clothes and other items that might otherwise be unaffordable. Charity shops would also claim to be an important component of a thriving retail and hospitality economy. Without doubt the shops are an important source of revenue for the charities.

The Shop View

The Totnes and District Chamber of Commerce, who represent many of the traders in the town centre, were asked for comment. They are well aware that high streets across the country are changing and in principle have no objection to charity shops. They are concerned that there may be a higher percentage of them in Totnes than in other towns.

The Chamber has also pointed out that the nature of charity shops in town seems to be changing. Originally charity shops were places to go to pick up a bargain. Increasingly in Totnes, charity shops seem to charge higher prices and appeal to wealthier customers looking for high end clothes and goods. Combined with increasing sales of bought in new items, rather than donated goods, charity shops are in more direct competition with commercial traders. Some of these traders think that charity shops should improve their presentation and customer focus and do more to market themselves and the town.

Get Communicating..

There is no clear answer to the question “Are there too many charity shops?” What is clear is that they are here to stay, and make a significant contribution to the retail mix in town. Maybe it is time for the commercial traders and the charity shops to work more closely together to jointly ensure the quality and attractiveness of the shopping experience in Totnes, and think about ways of working together to promote the town.