Charity Shops update

Our charity shops remain our main source of income. The first, opened in Kidderminster in the summer of 2009 has been a complete success. It has paid for all its start up costs, and delivered sufficient income each month after all operating costs are deducted to support the charitable activities.

The second charity shop, opened in Stourbridge in July has unfortunately not yet delivered what we wanted or expected. While it has remained profitable, in that its sales exceed its operating costs it has yet to repay the cost of acquiring and building it up for opening. The level of income it generates each month is also low, to the point that it is not effective yet in allowing to increase the number of dogs in our care.

This present a conundrum that we must pass in the next six months. Our medium term strategy is to continue to roll out charity shops as these should, in theory deliver income. However the Stourbridge situation has alarmed us. Its operating costs are very low - much lower than Kidderminster but the sales are also a third less than the Kidderminster branch.

With finances tight, the only way we can only a third charity shop is if the second shop repays the costs it took to open. And that seems some way off.

Our retail managers are working at many avenues to try and increase not only customers, but donations without which the shop could not function.

So the risk is there. Charity shops are not a given, and when after we opened Kidderminster we were smarting at how our larger charity chains delivered such low margins, we now realise that the success here was not easily repeatable. But this is short term observations. The Stourbridge branch is not losing the charity money, it just isn't delivering the sort of income we would have liked. Therefore we can persevere with Stourbridge, hoping that the medium term will lead to better awareness of the site.