Greetings card retailer Card Factory has reported pre-tax profit of £55.6m in the year to January 2011, up from £35.6m in the previous year.
Card Factory attributes the success to its continued policy of expansion through its store opening programme, which resulted in an increase from 483 to 531 locations during the year. The retailer also upped its revenue, from £209.4m to £228.8m.
Fierce competitor Clintons, on the other hand, reported a £10.6m pre-tax loss on reduced revenue of £432m (to the year to July 31, 2011). Clintons noted that it suffered due to low consumer confidence and weak footfall.
Experts believe that one of the reasons for Card Factory’s success is due to the fact that it designs, prints and sources its own cards, which enables it to make highly profitable margins. It is also thus able to sell cards at a lower price, such as its current seven cards for £1 promotion. Clintons, meanwhile, relies on Hallmark for its card supplies, and thus has less control over its pricing.