Following today’s release of Moonpig’s figures for the six months ending 31st October 2024; Aliyah Siddika, Retail Analyst at GlobalData, a leading data and analytics company, offers her view: “Moonpig has produced decent results in H1 FY2024/25, building on a successful trading period the previous year. The retailer achieved a 3.8% uplift in revenue this period, but ongoing challenges in the experiences division and a decline in Greetz’s revenue weakened its overall result. A focus on technology has continued to propel its performance, with a 53% increase in customer use of creative features to 6.5 million in H1. This investment in modernisation places Moonpig at the forefront of innovative online greeting card solutions and ensures it retains its lead in the online channel. Despite this, profit growth was modest, with adjusted EBITDA increasing by 0.9% year-on-year, compared to a significant 19.9% growth the previous year, resulting in a 10% decline in share price in early morning trading.
“The online greeting card specialist’s subscription services, Moonpig Plus and Greetz Plus, exceeded expectations, with a combined total of 750,000 members. These services foster customer loyalty and contribute to the growth of its active customer base, which increased from 11.4 million to 11.7 million in H1. Moonpig’s focus on broadening its appeal is evident in its recent partnership with The Entertainer, offering over 200 new toys & games on the platform from popular brands like Paw Patrol and Barbie. Expanding its gifting options allows Moonpig to cater to a broader range of customers seeking gifts for children, an area WH Smith is also developing with its Toys “R” Us concessions. Card Factory is also growing its gifting proposition with its new baby gifting range, including soft toys and confectionery. While Card Factory has a lower price point, Moonpig can capture consumer spending by promoting more affordable toys as add-ons to customers purchasing children’s or new baby-related cards. The convenience of buying a card and gift together appeals to customers seeking a hassle-free shopping experience. Moonpig plans to enhance its gifting proposition by introducing new category partnerships in health & beauty, homeware, and books in the future. It should focus on partnering with smaller retailers or brands, like Søstrene Grene and Foyles, to help differentiate Moonpig from competitors and attract customers looking for unique gifts.
“Since entering the golden quarter, Moonpig has been proactive this festive season, recognising that seasonal occasions tend to be a weaker area within its proposition. Moonpig did not rank among the top 10 retailers used for card & gift wrap purchases during Christmas 2023*, according to GlobalData Retail’s 2,500 respondent UK consumer survey. The online specialist has collaborated with the dessert brand Gu, where customers receive a free Christmas card with every Gu dessert purchase, aiming to boost website traffic. While creative, this collaboration may have limited impact due to its niche appeal. Moonpig also recently introduced AI handwriting for personalised cards, catering to the high demand for customisation during this peak card-giving season. This Christmas, Moonpig must leverage its reputation for personalisation by enabling customers to create personalised boxed cards, for example, cards containing pictures of the family at Christmas and gift hampers targeting Secret Santa shoppers to boost appeal.”
