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cardsharp
Forever Blowing
Bubbles? The news of a surprisingly good Mother’s Day for many retailers outside of those in the transport strike plagued major cities, was dampened by reports of yet more imminent strike disruption at Royal Mail and even a threat of it going into administration. What links an ancient Egyptian statue of a leonine mythical creature, a bubble blowing underperforming East London soccer team and Cardsharp’s lovely postie, George? Cardsharp shares the answer and ponders on the possible ramifications of this link. The answer to the aforementioned question is Daniel Kretinsky, also known as the ‘Czech Sphinx’, one of the richest and most inscrutable business men in Europe (hence his sobriquet), who is heavily involved in two things very close to Cardsharp’s heart, Royal Mail and West Ham United football club. Both are venerable institutions. Royal Mail’s origin goes back 500 years to the days of Henry VIII, while West Ham’s goes back to 1895, when the Thames Valley Ironworks football team was formed (hence its nickname, The Hammers). Well, Kretinsky has acquired a considerable financial stake in both over the last couple of years. Top: There is a lot up in the air right now in business, not just at Royal Mail and West Ham. Above right: Daniel Kretinsky, who runs and owns Energeticky (EPH), the biggest energy group in Central Europe has upped his stake in Royal Mail of late. Right: Daniel Kretinsky has been dubbed the Czech Sphinx, due to his poker face approach to investments.
22 PROGRESSIVE GREETINGS WORLDWIDE
Both are in a state of considerable turmoil at present, losing money, performing badly and restrained by certain financial and legal obligations. While Cardsharp won’t bore you with the potential ramifications for West Ham (although he could do for hours given the chance!), it is fair to say, if you are one of the richest and shrewdest men in
Europe, you don’t look to acquire considerable stakes in these organisations because you love them. Although for public relations purposes you may claim to! You do it no doubt as Kretinsky is that you see considerable opportunity for financial gain and in both cases he is obviously backing an outside bet. But the ramifications could be dramatic for our greeting card industry given its long-standing symbiotic relationship with Royal Mail. From the 1980s up until its privatisation in 2013, Royal Mail was very much an ally of our greeting card industry. It was heavily involved with the Greeting Card Association, even running consumer advertising campaigns promoting card sending. This was not just for altruistic reasons. It realised that although greeting cards accounted for a small percentage of its overall letter volume, greeting cards’ presence in the postal mix made the doormat drop much more palatable, providing a welcome distraction from the piles of junk mail and bills. And indeed, Royal Mail was willing to not only listen to our industry but often responded accordingly. It was only after intense discussions with the greeting card industry, through the GCA, in the run up to the move to ‘size based pricing’ that Royal Mail was dissuaded to impose a higher