With their cheap second-hand goods — from clothes to china — charity shops have long been a rich source for bargain-hunters.

But at a time when household budgets are tightened, yet the burden of business rents grows, charity shops are struggling to maintain their presence in the high street.

The closure of the Scope shop, in Vivian Avenue, Hendon, last Wednesday, is the latest casualty among charities facing difficulties.

Former manager Christine Williams said: “With everything in the news about the credit crunch, people who don’t have too much money could go to charity shops and get lots at a bargain price, but choose not to.

“If people do want to go out, they choose to go somewhere like Brent Cross and they don’t visit a high street like they used to.”

Scope used to collect sacks of cast-offs from people’s homes but, when that became too expensive, it relied solely on shop donations.

These too began to slow down as people became increasingly reluctant to get rid of things, explained Ms Williams.

Bernie Van West, a volunteer at the British Red Cross shop, also in Vivian Avenue, claims he has also seen a dramatic change in the fortunes of charity shops.

“This used to be a wonderful high street, but it doesn’t help us knowing that Scope has closed,” said Mr Van West, who has worked in the shop for three years.

“The numbers of people will gradually drop off from the area if there are fewer shops.”

He also blamed big-name shops for saturating the market with cheap new clothing.

He added: “It is terrible what they are doing to us. We can’t compete with a company that produces brand new T-shirts for £2. They are killing our business stone dead.

“The only thing that helps us is the British Red Cross name and the quality of the garments we have in the shop.”

In 2005, the Hendon branch recorded the largest annual income increase across the whole of the south-east of England.

But since then, average weekly sales have slumped from £1,400, to often little more than half that, and Mr Van West believes the impact is partly down to the economic squeeze.

“This is a poor area and people are feeling it.

“It is a financial situation they are not used to and people are literally counting out their pennies on the counter. It’s hard for everyone.

“It is run like a business and if it’s not making money, then it will close down and I can see the demise of the charity shop.”

David Moir, from the Association of Charity Shops, said: “It’s difficult to say how hard the wider economic downturn will hit the charity shop sector.

“On the one hand, customers might be attracted by the very good value for money, but on the other they may be equally attracted to the large discounters, particularly for clothing.

“Charities open and close shops in response to both local demand and wider commercial issues, so a closure in Hendon might not be due solely to local circumstances. There is wide concern that the downturn will especially affect the amounts and quality of donated stock, as people become reluctant to pass on used goods, or decide to sell them through internet trading or boot sales.”