Strong retail sales a sign of the times

Charities in Western Australia are taking advantage of strong growth in retail sales, with many expanding their retail outlets or ‘op shops’.

Next month, Good Samaritan Industries will open its third new store this year, in Canning Vale, bringing its total stores to 21. 

According to chief executive Chris Jones, it is the first phase of a plan to open three stores a year over the next few years.

Supported by a strong radio and print advertising campaign, Good Sammy posted a growth in sales revenue of about 4 per cent last financial year, and is aiming for 6 per cent next year.

“You would think that in boom times we’d be punished, in that people wouldn’t want to be buying second hand; but we’re not seeing that, in fact we’re seeing the opposite,” Mr Jones said.

“Our sales are increasing month on month and the number of customers that we’re getting is increasing.”

Non-clothing items were in high demand, Mr Jones said, including toys, crockery and books.

The Salvation Army is also experiencing growth in demand at its 44 stores in WA, according to state manager for retail outlets, Shaun Burgess.

“With interest rates and house prices where they are, we’re seeing a broader spectrum of people,” Mr Burgess said.

“What we’re finding is there are a lot more people buying home wares and furniture, particularly first homebuyers who’ve sunk every penny into their mortgage.”

Over the next 12 to 24 months, the Salvation Army plans to reach 60 stores through new acquisitions, in order to increase its retail income and raise the profile of its brand.

However, Mr Burgess said the organisation faced higher rentals and risked being priced out of the property market.

“Where the market is at the moment and the nature of our business, it’s not viable to move into the new suburbs,” he said.

“Anywhere past Port Kennedy or Halls Head is just astronomical.”

Save the Children Australia would also like to expand its retail presence but is finding it too expensive, according to retail manager David Bowie.

During the past two years, the organisation has undertaken a renewal of its nine stores in WA, which Mr Bowie said had helped to grow revenue by about 10 per cent this year.

WA’s strong economic conditions had probably fuelled demand, he said, but there were other factors involved. 

“I think there are a lot of people who like going to opportunity shops, and there’s been an increase in the number of books we sell. Books are quite expensive new, so there’s a lot of interest in them,” Mr Bowie said.

Regional stores are also performing well, particularly for the Australian Red Cross.

Of its 29 stores in WA, 22 are in regional areas and have posted stronger rates of growth than its city stores, according to senior manager retail operations, Viesia Kanik.

Ms Kanik said that, while many of the metropolitan stores had increased sales, some by up to 30 per cent last financial year, the performance was not consistent across the board.

Part of the growth in demand, she said, was being fuelled by the fact that regional stores were increasingly being supplied with stock from the city, which was different to that available in the country.

The organisation is also feeling the pinch of staff shortages.

“What we’ve noticed is the trade hasn’t necessarily changed but we’re losing volunteers,” Ms Kanik said.

“Because the cost of living is higher, people are looking for supplementary income and they’re going back to work.”