Oxfam ‘can’t guarantee future’ of charity shops as it also reviews warehouse business

Dwindling donations and stiff competition from secondhand sellers online prompt review but ‘no plans for closures yet’

Oxfam is reviewing the operations of its three warehouses in Batley, Bicester and Milton Keynes and says it “cannot give guarantees” on the future of its high street shops in a “difficult economic climate”.

The charity said it had no plans to close warehouses or shops but insiders fear that Batley, which houses Oxfam’s main textile recycling centre, will shut as part of a cost-cutting drive because the West Yorkshire site’s lease is up for renewal.

All three warehouses together employ about 90 people.

A source said Oxfam was considering closing up to 100 of its 500-plus UK outlets as sales at some were no longer viable. “Donations have dropped off,” the insider said, adding that the charity’s shops were also facing competition from online sellers of secondhand goods such as Vinted.

“Oxfam is always more expensive, and that’s starting to have an effect,” the source said.

Oxfam Activities is the charity’s arm that aims to raise money through its trade in new items for sale in shops, its textile recycling plant in Batley and the provision of stewards for festivals. However, it made losses of more than £2m in the year to March 2025 and in the prior year.

Sales fell by 7% in the year to March 2025, driven by a slump in income from recycling. This division of the business does not include direct income from the stores.

Lorna Fallon, chief supporter officer of Oxfam GB, said: “In [the last financial year], Oxfam GB’s shops, warehouses and online retail teams generated a £6.3m (net) contribution to our humanitarian work, as well as raising dedicated funds through emergency appeals to support crises in Venezuela, the Middle East and Ukraine.

“As is standard practice, we keep all parts of our retail operations under review via regular meetings. While we cannot give guarantees in this difficult economic climate, we are confident in and positive about our current retail performance and do not have plans to close our shops or warehouses at this time.”

Fallon said Oxfam had launched a new online rental service recently and had brought fulfilment of online orders back in-house, as well as opening a second superstore, in Manchester.

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“Next month our shops, warehouses and digital hubs will be leading Second Hand September, our annual campaign to tackle fashion’s environmental damage while raising funds for our global work on poverty and climate change,” she said.

The review of Oxfam’s operations comes after job cuts and store closures at charities including the British Heart Foundation (BHF) and Cancer Research.

The BHF closed 150 shops and cut jobs earlier this summer. It blamed rising costs and the shift to online shopping had made about a quarter of its high street locations commercially unsustainable. Cancer Research announced in October it would be closing 90 shops across the UK.

Charities selling secondhand clothing have also faced increased competition for customers and donations from online sellers such as eBay and Vinted, while the price of “rag” – damaged or unwanted clothing and home textiles for recycling, which was once a key source of income – has fallen in recent years.