updated - August 13, 2020 Thursday EDT
up by 9%
WHSmith wants to be part of cheap retailing by introducing a standalone store that sells inexpensive greeting cards.
The units, labeled as Cardmarket, will expand in lower class market not under the WHSmith's stores.
Launching inexpensive cards to old branches will win over their major card sales, that's why the brand thought of launching a different concept to improve its shares and presence in the market, as its chief official, Stephen Clarke has explained.
He revealed the goal since WHSmith declared its sales that went up to 9%.
According to Stephen, the card market has been going smooth for the past five years and figures have been consistently increasing . This is one of the signs for us. We have witnessed the strong presence of other retailers. We want to try the standalone inexpensive greeting card concept this time."
The improvement of Card Factor was highlighted by Stephen. The brand reached consistent sales improvement during the issues in economy, which allowed the high-end brand, Clinton Cards to be recognized.
The success of Card Factory has been the factor of the cheap retailing trend that prevented the UK consumers, whose living conditions have dropped due to low wages and increase on other expenses. Aldi and Lidl, have gotten market share from major supermarkets while B&M and Poundland have been doing well.
Cardmarket will not be that risky as an investment for a short time, cheaper rent place and there is no connection to the WHSmith group shown in such new concept.
WHSmith's promising figures were due to the increasing sales and income by 11%. Income from high-end shops were fantastic but also had slow days. Stephen will be cost cutting for the business in the next couple of years.
The savings will cover renegotiation other marketing agreements, opting for energy-saving items for the stockrooms and providing store officials gadgets like tables and computers so they work more efficient.
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