Following today’s release of Card Factory’s figures for the six months ending 31st July 2024; Tash Van Boxel, retail analyst at GlobalData, a leading data and analytics company, offers her view: “Card Factory started the year with admirable results as it built on a successful trading period the previous year. Group revenue rose 5.9% to £233.8m in H1 FY2024/25. Its group performance was driven by robust trading during H1 occasions, such as Mother’s Day and Father’s Day, and further expansion within the UK and internationally, as the greeting card specialist continues strengthening its store network and high street presence. Its store like-for-like (L-F-L) sales rose 3.7% in H1 FY2024/25, which was commendable given it was against a double-digit comparative figure in H1 last year. Strong demand for gifts and celebration essentials supported its instore performance, which remains a focus for the retailer. Its online arm, which had struggled to sustain growth post-pandemic, achieved 8.8% revenue growth, aided by investment in AI tools and enhancements to the online platform, such as an improved event reminder tool. Despite a positive performance across its channels, profit before tax declined 43.3% on FY2023/24 to £14.0m as Card Factory felt the toll of inflationary pressures, especially wage inflation, and 2024 investments that came to fruition.
“Card Factory continues to expand its gifting range, relying on this category to drive sales growth, as it experienced a 10.5% L-F-L growth in gifts in H1 FY2024/25. Consumers have taken well to Card Factory’s new baby gifting range, with the sales of soft toys up 27% L-F-L and confectionary up 30% L-F-L. Though the success of its offer will be due to Card Factory’s competitive pricing and wide range, popularity for the new baby occasion increased in 2024, with 17.3% of UK consumers buying for pregnancy/new baby occasions this year, up 1.3ppts on the previous year, according to GlobalData’s 2024 All Year Gifting report. As quality is an integral driver among consumers shopping for this occasion, Card Factory must balance value for money with durable materials so that its gifting range retains its appeal. Indeed, Card Factory is expanding its gifting range further ahead of Christmas 2024 as it introduces new baby, pet, and toy ranges this year.
“While gifting remains a focus for Card Factory, it has not lost sight of its core greeting card proposition, as it engaged in partnerships to support its core offer. Through its most recent collaboration with Aldi, Card Factory has become the exclusive everyday card supplier for the discounter, gaining a presence in 1,200 stores across the UK. Aldi’s reputation for low pricing is well suited to complement Card Factory’s card ranges, and this partnership will strengthen Card Factory’s greeting card sales. Indeed, by expanding its presence in Aldi, Card Factory will entice spending from consumers picking up cards while completing their weekly shops. Moreover, Card Factory’s trial with Just Eat, available from 19 stores across the UK (expanding to 21 in H2), aims to shorten the delivery time for online shoppers. This trial will ensure that consumers benefit from reliable same-day delivery, enabling those who forgot about an event until the day itself to buy a last-minute card without visiting a shop.”
