Oxfam, the charity based in Oxford, is assessing the operational status of its three warehouses in Bicester, Milton Keynes and Yorkshire. The organisation said that in a "difficult economic environment" it cannot guarantee the future of its physical stores.

Oxfam says it has no plans to close warehouses or stores, but insiders fear that as part of cost-cutting, the Batley site may be closed — the site is Oxfam's main textile recycling centre, and its lease is up for renewal. The three warehouses together employ about 90 people.

A source said Oxfam is considering closing up to 100 of its more than 500 UK stores, because sales at some stores have become unsustainable. This claim was denied by Lorna Fallon, Oxfam GB's interim chief support officer.

"Donation volumes have declined," the insider told The Guardian, adding that charity shops also face competition from online second-hand goods sellers such as Vinted. "Oxfam's stuff is always more expensive, and that has started to have an impact."

Oxfam opened the UK's first charity shop on Broad Street in Oxford in 1947. It is not the only charity facing financial pressure: the British Heart Foundation has announced the closure of 150 stores, and Cancer Research UK will shut 190 stores.

Oxfam's Oxfam Activities is responsible for fundraising through the sale of new goods, its textile recycling plant in Batley, and providing stewards for music festivals. But in the financial year ending March 2025, the division lost more than £2 million, having also posted a loss the previous financial year. In the year to March 2025, sales fell 7%, mainly due to lower revenue from the recycling business. This figure does not include direct revenue from stores. Sources are worried about the prospects of the Batley site, because its lease needs to be renewed, and it houses Oxfam's main textile recycling centre.

Fallon said: "In the last financial year, Oxfam GB's shops, warehouses and online retail teams contributed a net £6.3 million to humanitarian work, while also raising dedicated funds through emergency appeals for crises in Venezuela, the Middle East and Ukraine." "As is customary, we keep all aspects of the retail business under review through regular meetings." "While we cannot make guarantees in this difficult economic environment, we are confident and positive about current retail performance and have no plans to close stores or warehouses."

Fallon said Oxfam recently launched a new online rental service, brought online order fulfilment back in-house, and opened a second large store in Manchester. Another large store is located at John Smith Drive, Oxford Business Park South, in Cowley.

Despite ongoing financial pressure, staff and volunteers at Oxfam stores across the country are still working to turn donations into funds to help people in need around the world. The organisation is currently seeking donations for its annual "Second Hand September" campaign, which encourages people to donate and buy second-hand clothing.

In July this year, musician Ray Jackson, who played mandolin on Rod Stewart's chart-topping single "Maggie May", bought a rare instrument worth £2,800 at the Oxfam shop on Stert Street in Abingdon. The singer, formerly of the 1970s Geordie band Lindisfarne, then improvised a performance for staff and customers. Jackson's partner first spotted the mandolin in Oxfam's display cabinet and sent him a photo. He visited the shop the following Saturday to try it out and bought it on the spot.

For the second-hand clothing industry, this case shows that the rise of fashion resale platforms not only hits commercial resale but also squeezes the donation and footfall base of traditional charity retail; and if charities' own textile recycling operations shrink, it could affect the UK's domestic capacity for collecting and sorting old clothes.

Source: Leading UK charity is 'facing an uncertain future' · Originally published 2026-09-25