Gift packaging – bags, wrap, tissue, accessories – is often a neglected category in a retail newsagency business.
Outside of our newsagency channel, a card and gift retailer can see 20% of their total card / gift packaging revenue come from gift packaging. In our channel, the number is usually somewhere between 5% and 10%.
Gift packaging has been a focus in one of my shops over the last six months. It was accounting for 3.7% of revenue within cards/gift packaging. Looking at our most recent data this morning, it is contributing 6.2% of total gift packaging revenue. This growth is even better considering the overall card/gift packaging revenue growth of 36% being achieved.
Thinking of gift packaging more broadly, here are gift packaging revenue contribution percentages by segment a key supplier in this space shared with me as a benchmark:
- Bags: 37%.
- Rolls: 30%.
- Tissue: 11%.
- Folded wrap: 11%.
- Accessories: 7%.
- Wrap flat (sheets): 4%.
I share this because one way we are growing our packaging revenue is by looking at sales for each segment carefully.
The tissue segment contributing 11% of overall gift packaging revenue has surprised some I have discussed these percentages with. They felt it was too high. Considering the innovation in the tissue space and seeing this product in my own shops, I see the 11% as a useful benchmark, and one I want to pass.
While, for sure, growth in gift packaging revenue relies on having access to products your customers want. Your engagement is key, it is the starting point for change. Your engagement will drive supplier engagement. As I am seeing in so many cases now, excellent growth is there for the taking.
Check out your year on year gift packaging results. Compare your segment revenue contribution to the benchmarks shared here. You may discover an opportunity to manage for success.
Data is the key here, good data. Good data is key to good business decisions. Your data is far more useful and relevant than supplier sell-in data. While there is a place for supplier data and insights, when it comes to your shop and decisions on range, captions and placement, your data will matter the most.
My advice to all newsagents is – take ownership of the card / gift packaging area of the business. It will reward your attention with revenue growth, good margin revenue growth.