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The changing Coles supermarket greeting card model

IMG_7447I noticed this new Hallmark branded greeting card offer last night in an inner suburban Coles supermarket I check out every week or so. What is new is the two spinners at either end and the twenty-four pockets of $2 cards in the middle top tier of the unit.

The investment by Coles and Hallmark in this new approach demonstrates a focus by Coles in the greeting card category.

While some in various card companies will say we should not concern ourselves with Coles as a competitor, my view is this latest move in Coles shows we have to lift our own game in-store.

It is wrong in my mind to say Coles sells to a different card shopper. People may buy cards at Coles at different times but these people will also buy from newsagencies, at different times. This is why I am concerned about the Coles move, especially what appeared to be a stronger focus on the $2 cards.

We have to look at refreshing our own card offer.

Fixtures on the walls of most newsagencies are tired. They are the usual rake of pockets on the wall with cards laid out in the common way of birth to death and, often lifestyle in its own space. While some of us have experimented with full-face and integrated, not many newsagents have.

I think the newsagency greeting card approach today is pretty much the same as it was twenty years ago because card companies have not invested sufficiently in considering display alternatives for our channel and because too many newsagents have not taken initiative for themselves.

This has to change if we are to pursue and achieve card sales growth. We need to be more aware not only of Coles but of others in this space, especially kikki.K, Typo and the speciality businesses in the space.

I am tracking double-digit card sales growth  year on year. I know others tracking excellent growth too. So there is good news out there in newsagencies. I suspect this growth could be intensified if we are even smarter in our card offers, if we play way outside what has been traditional for us.

I urge newsagents hearing about the Coles move to not get angry as that would be futile. Get even by pursuing a more current model card offer. Do this by managing the category for your success. Be demanding of yourselves and your card suppliers. That Coles is innovating with Hallmark is business. We need to respond in a business appropriate way.

Footnote: What I saw at Coles this week reminded me in part of a display a saw when I visited the Papyrus showroom at the Atlanta Gift Fair in January this year:

IMG_4226

 

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Greeting Cards

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  1. Colin

    I was approached by Hallmark to stock cheaper cards, but found their model meant reducing profit margin. I selected another supplier of $3 cards with full profit

    For efficiency and financial return, I need a major supplier to populate control, at least that is what the major card suppliers tell me. The suppliers might be efficient but innovative they are not. They do not engage in merchandising initiatives , their focus is on pocket domination and following not setting the trend.

    Yes newsagencies need to up their game in cards, but I would suggest the main stream card suppliers are part of the problem. Better displays with a greater involvement in card selection and performance monitoring is the answer.

    5 likes

  2. eric

    after 21 years with Hallmark cards, my patient with them is running out, very soon i will not let them have 100% control of counter cards.

    2 likes

  3. eric

    i did not know Hallmark read my complain here. Now my area manager comes and fix my problems 🙂

    2 likes

  4. Steve

    Well we’ll take it you weren’t complaining about the service then Eric.

    2 likes

  5. David@anglevalenews

    take it from me, from bitter experience, suppliers do read this blog and do act on the thing they read, and not always in a good way.

    2 likes

  6. Brendan

    We have always stocked the $2.00 card range from Hallmark. While they don’t towards our VID they do make full standard margin.They don’t cost us sales of dearer cards as they suit a different market and help us compete with the discount store next door. We have in fact found $2.00 cards left among the dearer cards where customers have changed their mind and selected a deare card. In our instance (and we have substantial card sales) they work well.

    2 likes

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