East Anglia charity loses £5,000 weekly from rag prices

A children's hospice charity in East Anglia is facing a serious financial challenge. East Anglia's Children's Hospices (EACH) has reported a loss of nearly £5,000 each week due to a dramatic drop in the price of unwanted clothes. The price for clothing, often referred to as "rag," has decreased by up to 73% over the last three years. EACH operates 52 charity shops across Norfolk, Suffolk, Essex, and Cambridgeshire. The decline in prices is attributed to several global issues, including wars, labor shortages, and lower quality second-hand clothing. EACH's retail director, Ian Nicolson, emphasized that this loss is significant. The charity is losing around £250,000 each year just from rag sales. Furthermore, poor sales are leading to more items being left in landfills. Each week, the charity collects around 11 tonnes of clothing, but only a small portion is suitable for sale. In 2024, EACH's total income was £21.1 million, with £7.7 million coming from its charity shops. On average, the charity receives about 9,000 bags of donations weekly; however, only a few items per bag are good enough to sell. Robin Osterley, the chief executive of the Charity Retail Association, commented on the ongoing challenges. He noted that global conflicts have resulted in difficulties for rag collectors, impacting charities’ abilities to manage excess stock. Although the situation has improved somewhat since last year, the market remains unstable. Moreover, changing consumer habits have contributed to the crisis. The rise of "ultra-fast fashion" has meant that many collected clothes lack resale value. Unlike in the past, when most used clothing came from Western countries, now Asia and other regions are playing a larger role in the used clothing trade.