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PG/Cardgains Retail Barometer
How do you view the future of the independent card shop in the next 10 years?
How do you view the supermarkets’ expansion on the greeting card front?
0% 22% 37% 26% 15%
21% 63% 13% 3%
Very Positive Positive Neutral Weak Very Weak
Right: Indies can’t compete with the enviable footfall of supermarkets. Below left: Card Factory isn’t a threat to many independents. Below right: Indies describe the retailing landscape as ‘challenging’.
If you had a magic wand, what one thing would you change about the greeting card industry? Among the most popular responses to this one were: l Remove deep value and discount card shops l Stop supermarkets/ M&S selling cards l Encourage everyone to join together to promote the industry as a whole l Ban sending virtual cards l Impose a charge for cellowrapping l Bring all price codes in line! l Reduce postage charges l Change the perception (fuelled by Card Factory) that card sending is an obligation to be met as cheaply as possible so that customers would appreciate the quality and creativity of the industry l Abolish VAT on greeting cards l Close down Moonpig and other online card suppliers l Reverse the Brexit decision
Do you feel the price of stamps affects your card sales? 8% Decrease Dramatically 63% Decrease Marginally 29% Not Affected
What is your feeling about the number of Christmas cards people sent in 2017 (v 2016)? 4% More Than 2016 21% Same As 2016 75% Fewer Than 2016
Threats And Opportunities When it comes to threats to an indie’s greeting card business, continuing a pattern of last year’s findings, it is supermarkets that top the poll, due to their enviable footfall, invariably free parking as well as improvements in their greeting card selection and display. Card Factory is still up there on the threat front, but it is almost as though indies have become more confident in the co-existence with the UK’s largest card retailer, with almost half of indies now feeling neutral about the card multiple (and 4% seeing them as a boon to business), confident that their selection and customer service differentiates their independent store with the value giant. Interestingly, although slightly less than this time last year, Moonpig (and other print-on-demand operators) are viewed as more of a threat to an indie’s business than multiples retailers Paperchase and Clintons.
Serious Threat Threat Neutral Bonus
How do you currently view Card Factory? 17% 37% 42% 4%
Serious Threat Threat Neutral Bonus
How do you currently view Clintons? 4% 9% 82% 5%
Serious Threat Threat Neutral Bonus
How do you view Moonpig, Funky Pigeon and other print-on-demand operators? 4% 31% 65% 0%
Serious Threat Threat Neutral Bonus
How do you currently view Paperchase? 5% 5% 90% 0%
Serious Threat Threat Neutral Bonus
How do you view texting, emailing or social networking sites as an alternative to greeting cards? 11% 57% 32% 0%
Serious Threat Threat Neutral Bonus
In A Word When asked what word they felt would best describe the UK greeting card industry today, top of the picks for the third year running was ‘challenging’. l The top five POSITIVE descriptors... Buoyant, Creative, Exciting, Positive, Resilient l The top five NEUTRAL descriptors... Challenging, Communication, Complicated, Flat, Stable l The top five NEGATIVE descriptors... Declining, Desperate, Moribund, Stagnant, Stale
Sourcing Matters Reinforcing the importance of relationships with the agents and reps, indies still rely on these industry sales people as a reliable and trustworthy source of information on products for their shops, with PG faring highly too! By all accounts it looks like indies are not looking to expand the number of suppliers they will deal with in the coming year, with a ‘one in, one out’ being the name of the game for 70% of respondents looking to ring the changes on the supply side in 2018. Continued on page 49
PROGRESSIVE GREETINGS WORLDWIDE
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