The report, which covers the year to the end of March, says that retail revenue increased from £9.9m to £10.9m, but costs increased from £10.3m to £11.0m, meaning the division recorded a £169,000 loss.
The charity’s retail division made a loss of £389,000 in the previous year.
The charity’s annual report says the poor performance was down to a significant number of shop openings in the previous year, difficult trading conditions and shortages of stock supply.
The results show sales of new goods incurred a loss of £660,000, with donated goods and mail order sales making a profit.
Chris Coe, director of Shelter’s trading arm, said in a statement that the charity was carrying out a review of the retail operation to develop the best-performing locations, promote the use of Gift Aid and identify unprofitable locations.
"Overall, our shops are doing well," said Coe. "However, a small number of underperforming locations have had an impact on overall performance in the past year. We are also identifying measures to address those locations that are proving unprofitable, which might include closing some stores."
Shelter’s total income was £57.5m, up from £53.5m in the previous year, and expenditure was £59.8m, meaning the charity had a deficit of £2.3m on the year, down from £5.2m last year.
The charity’s overall voluntary income increased by 9 per cent year on year to reach £24.9m, with positive gains in legacies and the Street Academy, a new venture which advises charities on face-to-face fundraising, the report says.
Campbell Robb, chief executive of Shelter, was paid £128,000 during the year, the report says. The charity’s divisional directors are all paid £84,660 a year.