It's both tbf. Shops generate less revenue than before but business rates are going up. The charity shops have low customer footfall but get a legitimate tax break (and let's just say the rumours that the vape and nail shops aren't the best at tax compliance probably aren't totally unfair...)
Charity shops actually get pretty decent footfall at least in my experience (but maybe that's just where I live). More than that they have a few structural advantages other than tax breaks which means they are able to compete where traditional retail can't - things like low staffing costs (if they use volunteers), no/very low inventory cost, and they are usually able/willing to sign up to lease terms which more commercial enterprises would either struggle to secure, or would be unable to live with (eg almost no security of tenure).