Charity shops face crisis as donations overwhelm system
Major retailers are closing stores while donated clothes flood overseas markets, creating environmental and logistical challenges.
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Major charities are significantly reducing their retail presence as they grapple with an influx of donated clothing that often cannot be sold. The British Heart Foundation announced plans to close 150 of its shops by March 2028. Cancer Research will shut down almost 200 stores by April 2027, though it intends to open 12 larger out-of-town superstores nationwide.
The scale of the donation problem
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Charity shops, once seen as a source of affordable clothing and a means to raise funds for good causes, are now struggling under the weight of what is described as a “tsunami of clothing waste.” Volunteers report receiving sacks of donations in poor condition, including stained or damaged items and single shoes. The sheer volume makes it difficult to sort through, with much of the unsaleable stock being sold to “recycling” companies.
Tansy Hoskins, author of “Charity Shop World,” spent a year working in a London charity shop. She described the experience as “relentless and emotionally exhausting,” likening it to facing one’s “junk drawer” repeatedly. Hoskins noted that the quality of donated clothing has declined, with items of value often sold online before reaching charity shops, leaving them with the “fashion dregs.”
Exporting textile waste
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Much of the clothing donated to UK charities is not sold domestically. According to a report from Parliament’s Environmental Audit Committee, only 30 percent of worn clothes are resold in the UK, with the remainder being exported. World Bank statistics from 2023 show the United Kingdom is the fourth-largest exporter of used clothing globally. Items are sorted by season and sent to countries in Africa, Jordan, Nepal, and Poland. However, Hoskins points out that unwearable clothes sent abroad often end up in informal dumping sites, polluting waterways.
The fashion industry is a significant contributor to environmental pollution. The United Nations Environment Programme reports that the industry accounts for about 10 percent of global carbon emissions and is projected to increase its greenhouse gas emissions by over 50 percent by 2030. The toxicity of synthetic materials in fast fashion contributes to air and water pollution when discarded.
The business behind donations
Investigations into the companies that handle donated clothing reveal a complex network of holding companies and private equity firms. Hoskins uncovered that the ultimate beneficiaries of these UK-based used clothing collectors can be traced to wealthy individuals, such as Prince Hans-Adam II of Liechtenstein. Furthermore, high street retailers sometimes donate unsold stock to charities, benefiting from tax deductions for the value of these donations. This practice is sometimes referred to as “Zara sludge” and can be priced higher than donated items.
What happens next
The challenges faced by charity shops are also impacting other charitable organisations. The Hackney Children & Baby Bank recently announced a pause on donation appointments due to overwhelming volumes, highlighting the broader issue of excess items. While grateful for donations, these organisations are urging the public to donate only clean items in good condition to help manage the flow of goods.
Questions this report answers
+Which major charities are closing shops and why?
The British Heart Foundation is closing 150 shops by March 2028, and Cancer Research will shut nearly 200 stores by April 2027. Both charities are struggling with an overwhelming volume of donated clothing, much of which is unsaleable and creates logistical and environmental challenges.
+What happens to the clothes donated to charity shops?
A significant portion of donated clothes, particularly those in poor condition, are sold to 'recycling' companies. These are then often exported, with much of it ending up as waste in countries overseas, contributing to pollution and overwhelming local markets.
+How does the fashion industry contribute to this problem?
The fashion industry produces vast quantities of clothing, contributing about 10 percent of global carbon emissions. This high production rate leads to a large volume of textile waste, which charity shops are often left to manage, with much of it being exported.
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