Charity shops make more money when they stop looking like cluttered storerooms.
New research with Hospice Whanganui found top-performing charity retailers invest in light, well-designed spaces that suit volunteers, customers and donors.
Why hospice whanganui relies on charity shops
Hospice Whanganui is a charitable trust and the district’s main provider of specialist palliative care. It runs a 24/7 nurse-led model focused on in-home support, plus a small in-patient unit for short stays.
The service area covers nearly 10,000 square kilometres, with about a third of the population living rurally. All services are free, which means the organisation must raise a large share of its annual costs.
Like most hospices in Aotearoa, only around half of Hospice Whanganui’s annual costs are covered by government funding. The rest comes from local fundraising, including revenue from its retail stores.
What the massey university research looked at
Master of International Development student Charlie Stapleton Stevens spent the summer embedded with Hospice Whanganui to analyse its charity retail model. The project ran from early December 2025 to early March 2026.
Stevens analysed financial data, interviewed key stakeholders, and visited other high-performing charity retailers across the lower North Island. He compared how different organisations run stores, present stock, and support volunteer teams.
“I was excited by the prospect of getting an understanding of how decisions are made and why things are done in particular ways.”
The scholarship was funded by Hospice Whanganui and delivered in collaboration with Te Kunenga ki Pūrehuroa Massey University. Stevens was supervised by Professor Regina Scheyvens, Professor Nitha Palakshappa and Dr Sarah Dodds, with a focus on marketing, sustainability and retail.
How ‘light and easy-to-navigate’ shops boost revenue
The work found that charity retail performance often depends on meeting the needs of three groups. Those groups are volunteers, customers and donors.
Stevens said strong operators think deliberately about the shop environment, not just the stock on the racks.
“Participants from other charity retailers frequently highlighted how their organisations had intentionally transitioned from dark, cluttered, disorganised shops packed with odds and ends to light and easy-to-navigate spaces with clearly defined sections and strong product presentation.”
That approach treats the store as a retail destination. It also aims to make it simpler for donors to feel confident about where their goods will end up, and for volunteers to keep displays tidy and consistent.
Participants from other charity retailers frequently highlighted how their organisations had intentionally transitioned from dark, cluttered, disorganised shops packed with odds and ends to light and easy-to-navigate spaces with clearly defined sections and strong product presentation.
What hospice whanganui says it will do next
Hospice Whanganui chief executive Helen Leslie said the report would guide future decisions about retail operations, as the organisation weighs how to lift revenue without compromising its community focus.
Helen Leslie said: “Charlie’s research and analysis of both the current operations of Hospice Whanganui’s stores and several other charity retailers in the lower North Island will provide us with valuable insights to help inform any future decisions about our retail operations. Our focus remains on continuing to serve the Whanganui community in the best way we can.”
The findings land as charities face higher operating costs and rising demand for services. Stevens said organisations are under pressure as funding gaps widen.
“Many charities across New Zealand are at a really difficult crossroads at the moment. They’re dealing with increasing demand for their services, rising costs and declining government funding. Because of this, it’s more important than ever for people to support their local charities in whatever way they can.”
What it means for wellington charity retail and donors
The research is based in Whanganui, but its lessons travel. Wellington’s second-hand economy has grown alongside big weekend events and foot traffic magnets such as CubaDupa, where visitors often spill into nearby retail.
Charity retailers in Wellington also compete for the same discretionary dollars as live music and youth events such as the Smokefreerockquest national final. In that environment, clearer merchandising and an inviting layout can help a shop convert browsing into sales.
For donors, the message is practical. A well-lit, organised store signals that donated goods will be processed, priced and presented in a way that returns more to the cause.
For volunteers, it points to workflow. Defined sections, better storage and a consistent presentation standard can reduce the time spent hunting for space and re-sorting piles.
Charity retailers looking to sharpen their model can also draw on public guidance about the sector’s role and reporting. The Charities Services register sets out how charities in New Zealand report, what they are set up to do, and where their income comes from.
Across the Tasman, debates about costs and funding pressures on community services have parallels with other public policy moves such as Free TAFE expansion in Victoria, which aims to reduce barriers in another part of the social economy.
Hospice Whanganui’s retail work will continue as the organisation looks to keep services running across its large catchment. Stevens said: “I hope the findings of this research project help Hospice Whanganui improve its retail offering, boost its financial performance and continue to offer its services to the Whanganui community for many years to come.”
