Card Factory has seen significant growth in sales on its websites after it was forced to close its stores at the start of the coronavirus outbreak.
Sales on the greeting cards and gift retailer’s main website have jumped 268% since the lockdown began, while its Gettingpersonal site has grown sales by 57.5%. To cope with the increased demand and to facilitate social distancing, the company opened a second fulfilment unit in Wakefield.
Although Card Factory’s shops have been closed during the crisis, the company is still supplying cards to Aldi in the UK and its Australian partner, The Reject Shop.
The shop closures have meant that all of Card Factory’s store staff have been furloughed under the government’s job retention scheme. However, some support centre staff are working from home.
In preparation for re-opening, the company said it was currently working on changes to its store operations to accommodate the introduction of social distancing.
In order to protect its finances during the crisis, Card Factory said it was utilising relevant government support schemes and cutting costs. Actions to preserve cash include rescheduling seven new openings to next year, reducing capital expenditure, renegotiating store rental payments, and managing stock intake and payment terms with suppliers. The group has also decided not to pay a final dividend for its fiscal year 2020.
Card Factory stated it was confident that these moves would ensure the business has access to sufficient liquidity, even in the event of a prolonged store closure period.
NAM Implications:
- Surprising surge in online joke-exchange…
- That said, the Card Factory output obviously appeals…
- …and as always a business should follow market trends…
- …even if it means a reduction in outlet numbers.
