The British Heart Foundation (BHF) is set to close 150 charity shops across the UK after soaring employment costs and mounting pressure on high street retailers eroded profitability.
The charity said it would shut almost a quarter of its retail estate over the next two years after concluding that a significant number of stores were no longer financially viable. The move comes after successive increases to the National Living Wage, introduced under Labour, added to the cost burden facing employers across the country.
BHF, Britain’s largest charity shop retailer, said it was operating in an “exceptionally challenging” trading environment. The charity plans to close 90 stores by March 2027 and a further 60 by March 2028.
While the organisation has not disclosed how many jobs could be affected, it said support would be provided to employees impacted by the closures.
The decision highlights the growing strain on employers following a series of wage increases. BHF’s annual report noted that a 9.8 per cent rise in the minimum wage in 2024 significantly increased costs across the organisation. Further increases of 6.7 per cent in 2025 and 4.1 per cent in 2026 have added to those pressures.
Financial results underline the challenge. Retail income fell 2 per cent to £233 million in 2025, while profits from the charity’s shops slumped by more than 80 per cent to £3.3 million. Overall operating costs rose to £229.6 million, with higher wage bills among the key drivers.
Dr Charmaine Griffiths, BHF’s chief executive, said the charity had been forced to take difficult decisions to protect the long-term sustainability of its retail operation and the funding it provides for cardiovascular research.
The closures are the latest sign of pressure on the UK’s high street, where retailers and charities alike have warned that higher employment costs, taxation and weaker consumer spending are making it increasingly difficult to keep stores open.
Cancer Research UK announced the closure of 90 shops last year, citing rising costs, inflation, increased National Insurance contributions and changing consumer habits.
