Donations to Oxfam's shops drop by 15%

Oxfam is the biggest charity retailer in the UK

Donations to Oxfam's network of 700 UK shops have fallen by 15% over the past 12 months, the charity has revealed.

It said this was evidence that the recession was ongoing, meaning that families bought less, replaced less and therefore had less to give away.

David McCullough, of Oxfam, said the charity "can only wait to see" if seemingly optimistic UK retail figures are "reflected" in increased donations.

More than 80% of its income comes from donated goods, such as books and CDs.

Although donations to Oxfam fell, sales of donated goods have increased by 5% year-on-year.

Without continued donations of everything from clothing to cookware, Oxfam shops could not continue to play such a key role in communities across the UK David McCullough Oxfam director of trading

Book sales were up by 7% and music sales have also risen.

Oxfam, which is the UK's biggest charity retailer, said donations to its shops had "long been a barometer of retail trends in the UK, rising and falling in direct parallel with the strength of the high street", adding that "the current mood of optimism may be misplaced".

However, it said it is faring better than many others in the charity sector largely due to its online sales drive, which has contributed almost £2.4m in sales in this financial year - 70% up on 2008.

Mr McCullough, the charity's director of trading, said: "We rely on the generosity of the public. Without continued donations of everything from clothing to cookware, Oxfam shops could not continue to play such a key role in communities across the UK.

"Discretionary spending remains low, big sales are starting earlier and discounting harder, and we're having to work harder than ever to maintain the high quality of donations."

Oxfam makes more money per shop per week than any other charity retailer in the UK and is supported by a network of 21,000 volunteers.