Three technology strategies to help charity shops meet consumer demand

A growing number of consumers are turning to charity shops instead of traditional retail stores, driven by a desire to shop more sustainably and save money. According to the 2024 Charity Shops survey conducted by Civil Society Media, this shift is reshaping the retail landscape, with charity shops enjoying a surge in popularity.

And it’s not just in-store sales benefiting from this trend. The Charity Retail Association’s latest Quarter Market Analysis report highlights a 21.2% rise in online sales for charity shops, reflecting their increasing appeal across all shopping channels.

As consumer demand grows, charity shops must adopt modern technologies in place to support their customers and keep sales high. Here are three proven tech strategies charity shops should implement to meet these challenges head-on.

1.   Automate inventory management

Managing donations is both an opportunity and a challenge for charity shops.

A recent YouGov poll revealed that 84% of UK adults regularly donate unwanted items, meaning these shops must process a diverse range of goods - clothing, jewellery, home goods, and furniture - on a weekly or even daily basis. However, without an efficient system in place, the influx of donations can quickly overwhelm operations, making it necessary for charity shops to keep up with goods coming in, and goods going out.

To stay on top of inventory, charity shops need tools that can track stock in real-time, monitor what’s selling, and identify items that may need to be discounted or removed to free up space. For example, Sue Ryder, a UK charity operating 420 shops and an online store, implemented a modern inventory management system to streamline its operations.

“Now we finally know what stock is selling and what we need, in real-time,” said Ralph Larcombe, EPoS Systems Manager at Sue Ryder. “Replenishment is much more effective than it used to be, and it has brought stock holding down, saving us money.” By automating inventory tracking and replenishment, Sue Ryder has reduced costs while maintaining better control over its stock.

2.   Use data to understand customer behaviour

Charity shops are attracting a significant portion of shoppers who are abandoning high street stores. According to research from the MIND mental health charity, 48% of British shoppers now prefer charity shops for their purchases. To keep these customers coming back, charity shops must make sure they have the right mix in stock. Tools that analyse shopping patterns and trends can help.

Having clear access to customer data can give charity shops insight into what shoppers want and help them make informed decisions that drive sales. For example, if vintage clothing proves to be a bestseller, shops can prioritize accepting donations of similar items. Conversely, if large furniture items struggle to sell after the holidays, shops can reduce their intake until demand picks up again.

Real-time access to sales and customer data allows charity shops to identify popular products and adjust their strategies accordingly. This approach ensures they deliver a shopping experience that meets customer expectations and encourages repeat visits.

3.   Manage all operations with the same system

Despite growing demand, many charity shops still rely on outdated legacy systems to manage their operations. These older systems may be cheap - but they can hinder growth, lack modern capabilities, and result in higher maintenance costs over time. To keep up with changing consumer needs and support expanding operations, charity shops should consider adopting a modern PoS and retail management system that unifies all aspects of their business.

The Royal Horticultural Society (RHS) is the UK’s leading garden charity, operating retail shops in all its five gardens, as well as an online store. By using a single retail system to manage their entire business, including sales, inventory, e-commerce, events, and more, RHS has achieved greater efficiency with its operations. This improvement also brought a 300-400% increase in their online sales.

“We weren't expecting it to take off quite as brilliantly as it did,” said Lynn Moore, Senior Project Manager at RHS. “The LS Retail Software solution supported this increase in sales from all aspects - sales order capture, fulfilment, dispatch and stock replenishment allowing the RHS to continue giving excellent customer service during a period of unprecedented trading.”

Don’t wait for change

As the popularity of charity shops grows, embracing the right technologies is essential for success. From automating inventory management to leveraging customer data and unifying operations, modern tech solutions empower charity shops to meet rising consumer demand while optimizing their resources.

With these strategies in place, charity shops can continue to thrive and continue to provide necessary support to their communities and the causes they champion.

Contact our experts to discover how our modern software solutions for charity shops can help you achieve operational success.

About LS Retail, an Aptos company

LS Retail, an Aptos company, has been providing comprehensive software solutions to retail and hospitality businesses worldwide for over 30 years.

Our unified, modular solutions combine sales, inventory, customer loyalty, and reporting, into one system with the flexibility to scale and add functionality as business needs evolve. Today, tens of thousands of retail stores, restaurants, cafés, pharmacies, resorts, cruise lines, and more rely on LS Retail software in 157 countries.