n all states and territories, meets a particular need for affordable consumer goods – much like the charity sector in general.  “That’s where we really play a key role for people who are trying to make ends meet,” Davis told Inside Retail. “But shopping with us is also a good environmental choice.”  What you might not know about Salvos Stores is that it has a significant online presence, with more than 70,000 items listed either on its site or through an Ebay shopfront. Online represents the first major plank in the organisation’s growth strategy in 2023, and it is seeking to establish e-commerce hubs in all major capital cities over the next 12 months.  Online to bricks-and-mortar, seamlessly “Customers in Western economies now expect a seamless [transition] between what happens online and what happens in-store,” Davis explained. “Even in the charitable sector, this is becoming the new normal.”  That said, Salvos Stores’ online offerings are a little different to what a customer might find when they visit a physical location. On the web, customers are searching for name brands and activity-focused goods like hiking clothes and boots, as well as fashion labels.  “We also sell small electrical goods and collectables, but the vast majority of our online volume is fashion,” he said.  Online is also critical to Salvos Stores for logistical and customer service reasons. Customers will use the internet to check store locations and opening hours, as well as the types of donations being sought. Then they might book a home collection online, Davis said, or donate through the online portal.  “For us, it’s about making sure the experience is seamless across all channels,” Davis said. “And it’s also about bringing the typical retail experience to life in the charitable sector.”  Adding community stores to the network  The second plank in Salvos Stores’ growth strategy for 2023 is building out its network by bringing community charity stores into the fold and rebranding them within the corporate format.  There are literally hundreds of non aligned charity stores in Australia, and Davis wants to make them part of Salvos, upgrade their customer experience, relocate them into higher traffic areas, and give those community stores a new brand.  “In corporate-speak we are essentially acquiring another retailer,” Davis said. “But in our case, it’s all under one banner.”  Salvos Stores isn’t the only network of charity shops. Well-known chains such as Red Cross and Vinnies also have a retail representation as a way of raising funds for their work helping vulnerable Australians.  But Davis doesn’t see them as competitors, noting they all share the same mission. “So in a sense, we are more like collaborators.”  Which isn’t to say there are no points of difference between chains. Customer feedback tells Salvos Stores its charity shops have a friendlier retail environment than others, its stores are well-presented, and their product quality is generally better. Salvos also puts a greater emphasis on customer service, placing it a nose ahead of its contemporaries, Davis said.  He’s also quick to note Salvos Stores isn’t visited only by people on low incomes, such as students, the unemployed and retirees. Only 5 perthere out of necessity, meaning 95 per cent make a conscious decision to buy from there for other reasons, including sustainability.  “When we do our research we find all types of Australians, from all walks of life, are engaging with charity stores,” he said. “And that’s a really encouraging shift in our market.”  Investment in technology  Effective technology, from supply chain to warehousing, as well as an easy-to-use e-commerce site, are table stakes for retailers, and Salvos Stores is no different. Davis said over the next two years the organisation will make a significant investment in its retail IT infrastructure, to support a genuine omnichannel experience.  This means coordinating logistics, warehouse and donations, along with the retail front end, under a single, flexible system. “It’s all about getting the right product to the right place at the right time,” Davis explained.  Investing in technology, rolling out new stores and bringing others under the corporate umbrella, as well as having an effective e-commerce strategy, won’t distract Salvos Stores from its reason for being, Davis said. Those investments will simply make it easier for the chain to carry out its mission, which is to support Australians in need.  “The fact is, Australia is about to enter a season when a lot of people who haven’t done it tough in the past are going to do so,” he said. “It’s important for the Salvation Army and other like minded organisations to do what they can to support Australians as they go through the next chapter.  “It’s something that’s a shared responsibility and we are looking to work with other partners to make sure we play our part, particularly over the next 12 months or so.” This article was originally published in the 2023 Australian Retail Outlook, powered by KPMG. Download here.