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CARDSHARP Cardzone. M&P had bravely opened some really impressive greeting card stores, so the business failure here was a bit of a blow to anyone hoping to see another independent retail greeting card chain grow and develop. And then just recently, Cardsharp heard rumours that Louche Limited, who trade as Joy from 21 stores (the same amount as Card Land. What is it about that number?) had appointed the KSA Group to explore preparing a proposal for a company voluntary arrangement (CVA) who was gauging reactions from publishers that supply the retail group as PG went to press. Although Joy is primarily a fashion chain, and far removed from the likes of Card Land and M&P, in recent years it has become quite a major retailer of cards and gifts, and Cardsharp is aware of many publishers who are bracing themselves to catch a cold. This is not the first time that Joy has experienced
business troubles having succumbed to administration around a decade ago. And then there is the trickle like effect of various indies going into liquidation or choosing to close down when their shop’s leases come up for renewal. One of the most recent of the former in London is New Frames and Rhymes with Orange, although this prominent indie player continues to trade under a new company. But then, reflected Cardsharp, before we all start panicking, there is some positive financial news coming out in the media. Cardsharp covered Card Factory’s impressive figures extensively in last month’s column and was also interested to read that the value chain’s long-standing and wellrespected finance director, Darren Bryant, is stepping down after eight years. A new finance director, Kris Lee, has been appointed as his replacement, and like the incumbent ceo, Karen Hubbard, Kris has cut her teeth in the retail value sector, having
Left: Card Factory’s finance director Darren Bryant is stepping down. Below left: Card Land was a casualty of 2017. Bottom: Paperchase’s chief executive, Timothy Melgund.
previously been financial director of Edinburgh Woollen Mill, owner of the Peacocks chain, among others. By Cardsharp’s reckoning of the original ‘Dean Hoyle Brigade’ there is only Stuart Middleton, the long-standing creative director and industry veteran, left in a senior executive position at the plc, and understandably he is not working anything like the hours he once did. Cardsharp was also intrigued to see the design-led Paperchase chain appear recently in the Sunday Times Profit Track 100. This league table, which shows the 100 fastest growing companies in the UK, put the card, stationery and gift retailer at number 55 in its list, reporting an impressive 75% increase in profits, up to nearly £5 million in 2016. Quite an achievement thought Cardsharp, when you consider that up until recently Paperchase struggled to make a profit and was nearly fatally hamstrung a few years ago by the collapse of the US-owned book chain Borders, where the group had many concessions. And Paperchase is now
operating from 130 stores in the UK with a further 30 international concessions and franchise sites. Long-term chief executive Timothy Melgund (who has been there for 25 years, since it was a tiny acorn) and his team have obviously done an amazing job there. And then there is old favourite, the venerable WHSmith plc, which this year celebrates its 125th anniversary. Not really a specialist greeting card retailer Cardsharp knows, but still a considerably important player on the greeting card front. It’s specially relevant these days with the halving in the last few years of the amount of Clinton’s outlets in our malls and high streets. Cardsharp is never ceased to be amazed how in every financial reporting period, WHSmith manages to increase its profit on the back of decreasing sales, at least with regard to its high street chain. Meanwhile, its travel division continues to expand its sales and outlets at a rate of knots. Cardsharp is still amazed that WHS’ High Street division’s sales were down likefor-like by 3%, but it still managed to maintain profits of £53 million. Interestingly, the retailer attributes moving stationery (into which it bundles greeting cards) to more front of store as a contributing factor in its continued success. Funkypigeon.com, WHSmith’s digital greeting card retail division gets an honourable mention in the financials, although no figures are reported. But intriguingly for Cardsharp there is no mention in the financials of its Cardmarket value card shop chain, WHSmith’s attempt to ‘do a Card Factory’, or its up market Paper & Script brand. Cardsharp is unsure what, if anything, can be read into the silence on these fronts, especially as when Cardmarket was launched there was talk about it growing to a 100 stores in a year, but that didn’t happen. So there you are! The first third of the year has gone and we have already experienced the good, the bad and the downright ugly! We just could all in the industry do with a little bit more Clint (The Good!) and a little less of the bad (Lee van Cleef ) and the ugly (Eli Wallach). As Clint would memorably say in another classic movie of his, ‘Dirty Harry’, a bit more of the good would ‘Make my Day’!
PROGRESSIVE GREETINGS WORLDWIDE
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