Oxfam boss defends way of doing business (From Salisbury Journal)

Oxfam boss defends way of doing business

3:44pm Monday 10th August 2009 in News By Annie Riddle

OXFAM’S head of retail has defended the charity’s way of doing business after it was blamed for the closure of a Salisbury bookshop.

Sarah Farquhar was responding to an outpouring of sympathy from Journal readers for Marc Harrison, who shut Ellwood Books in Winchester Street two weeks ago.

Mr Harrison sparked a national debate when he blamed unfair competition from Oxfam, which benefits from reduced business rates, unpaid staff and free stock, and can afford to rent prime sites. He branded it “the Tesco of the book world”.

Ms Farquar refused to disclose how much Salisbury’s Oxfam bookshop, in Catherine Street, takes or how much profit it makes.

She said: “It’s not because we’ve got anything to hide, but if I gave that information, people would go in and start conversations about it with our volunteers, and put them on the spot.

“I can say that our average shop makes £30,000 profit before central overheads. We do make sure that each shop unit can make more than £10,000 a year before we sign the lease.

“A lot of the criticism we have had is about us being so businesslike. But we have to be accountable for the return on our investment. We don’t target booksellers, we simply look to survive in a really competitive environment.

“I have spoken to the shop and area managers and they have received lots of support from existing donors and customers. And as a result of the publicity, lots of new people have gone to look at the shop. The feedback is overwhelmingly positive.”

Ms Farquhar conceded: “This has opened up a wider debate about the challenges facing independent retailers, and where charity shops fit in with that. These are things we will consider and build into our thinking going forward.”

But she went on: “Customers have become much more sophisticated, and we have had to think about how we differentiate ourselves from other charity shops – for example, by opening boutiques as well as bookshops.

“It’s really important that the community supports the shops in terms of volunteering and donating goods, otherwise they wouldn’t exist.

“I can understand the burden other shopkeepers have, particularly in a recession. I am very sorry that Mr Harrison’s shop has closed. But my responsibility is to make as much as we can for the billion people living on less than a dollar a day.”