The Charity Retail Association has encouraged charity shop operators to engage with their local independent retailers to allay concerns about charity shops taking over the high street.

As charity shops have proliferated during the recession, they have also begun to draw opposition from independent retailers and some politicians, who complain that with the business rate relief offered to charity retailers, the not-for-profits have an unfair advantage.

CRA chief executive Warren Alexander yesterday told his members at the CRA annual general meeting that charities must build bridges with small retailers in their communities.

One area which appears to draw particular ire from independent retailers is the amount of new goods which charities sell in their retail outlets. While the law states that charity shops must only sell a majority of donated goods, Alexander estimated that at present probably only 5 per cent of charity shop sales nationwide were the result of new goods.

"I don't see it as a huge problem across charity retailers," said Alexander.

Some present argued that if charities continue to sell more new goods, they will struggle to maintain their exceptional status and will continue to draw criticism from retailers.

Alexander said that larger retailers, such as Boots, had no concerns about the growth of charity shops, but that charities should engage with local retailers as well as the broader local business community to demonstrate their worth to the high street.

"Charity shops do an awful lot more than raise money," said Alexander. He called on charities to demonstrate the additional value they provide to the community by providing employment, services and volunteering opportunities in store.

The CRA has commissioned a Demos report into the impact of charity shops on the high street and individuals which will be released later this month.