UK card retail chain Clinton Cards has been forced into administration by John Sands parent company American Greetings following their purchase of Clintons debt through a UK subsidiary of American Greetings. American Greetings is #2 US card company behind Hallmark Cards.
With more than 700 stores, the Clintons network is a highly visible player in the greeting card space in the UK. Store closures as a result of the administration action will put even more retail space on the market and add to further job losses in retail – already at a high.
I have looked at Clintons stores a few times over the years, most recently a few weeks back when I was in London for a retail conference. It was clear even then that the group was not travelling well with an odd mix of products.
I wonder if the decision by American Greetings decision is related to their recently released fourth quarter figures showing a small loss.
Card sales in the UK are down more than 4% year on year – against the growth trend we are seeing in Australia.
Newsagencies are well placed to compete with specialist card shops because of the broad base of shopper traffic we achieve. While our product category has its challenges, it offers a fundamental structural strength, particularly in areas such as greeting cards.
Footnote: Clintons had sales of £360m from its 700 or so stores. This data should interest newsagents as it goes to the heart of the challenge of an almost single category retail outlet which relies on major seasons to carry it through the year. I have covered some of this in the recent Newsagency of the Future series, sharing ideas on how newsagents can leverage their base for card sales growth.