A new retail model

Project overview

In 2019, Acorns Children’s Hospice carried out an external review of its retail operations, with a view to developing a new, clearer business model.

At the time, Acorns had 57 shops, a house clearance service, several warehouses and an eBay shop. The retail team developed a three year retail strategy, aiming to create a stronger and more supportive retail culture that would make a significant contribution to the hospice.

Outcomes

Acorns has streamlined its retail model, focusing on 45 shops.

Recognising that people are the most important asset, the hospice has taken several steps to improve the experience of staff and volunteers.

They have invested heavily in digital infrastructure, making sure all the shops are wi-fi enabled and providing equipment such as iPads. Better IT systems have enabled the team to streamline central processes, which in turn has freed up managers’ time.

There is new and improved training for staff and volunteers, and pay has increased to be more competitive with other local employers.

Over two years, all the shops were refitted. As well as upgrading the front-of-house areas, it was vital to make the back-of-house a welcoming place. Updates include:

• a welfare space for volunteers
• a dedicated staff area
• adequate heating for the back offices
• facilities for playing music in the back offices
• anti-fatigue mats for people who spend a lot of time on their feet.

In the first year since these measures were implemented, there was a 9% increase in volunteering hours.

The hospice has empowered shop managers to tailor their stock and pricing to their local communities, using the SPICE model (Supporting People to drive Income in their Community through Empowerment). Acorns provides a broad framework for its retail outlets, but recognises that there is no one-size-fits-all approach. This means each shop provides an offer that meets the needs of the local demographic.

As a result of the new strategy, the hospice has seen record levels of income and profits.

In 2022, Gary Pettit, Acorns’ Retail Director, won the Leadership award at the Charity Retail Association Awards. In 2023, the hospice won Outstanding Charity Retailer.

Key facilitators

The Board of Trustees and Executive Board at Acorns have been very supportive of the new strategy. Shortly after the programme started, lockdown began. Rather being furloughed, the Retail Director was able to use the time to complete the new strategic plan.

As a local hospice charity retailer, Acorns is able to be more agile than a national business and has been able to make changes relatively quickly.

Challenges

As part of the new strategy, several shops and warehouses were closed. This involved making difficult decisions and had an impact on people’s livelihoods. However the ultimate purpose of a hospice shop is to fund hospice care, and there was no choice but to close those that were not generating a profit.

Some of the shop managers were reticent about adopting a more independent approach, as they had become used to centralised management. To overcome this, the hospice organised face-to-face training sessions and committed to taking managers on a learning journey so they could understand the new model and develop the skills they needed.

Acorns plans to evolve its business model to meet the needs of local shoppers and follow consumer habits. For example, in some areas there are a growing number of ‘conscientious shoppers’ who are looking to charity shops as a place to buy environmentally sustainable clothing.

However in other areas, there are more ‘treasure hunters’ looking for high-end, vintage clothing.