Card Factory Share Discussion Threads

[wiseman1967] 07/11/2019 14:37

Renewed - the quality of cards is a subjective matter of opinion. The price point is objective. CF sell most of their cards for under £1 whilst Clinton's sell them for £2.49-£2.99 - that is a 3x differential. The everyday cards are printed in the UK (near Leeds) and I can't see any quality difference. Even if there were, the price differential appears to compensate for that given the anecdotal evidence of number of shoppers in each store and the financial performance supports that. I would agree with you that there is scope for CF to target the 'upmarket' end of the market, but would suggest it is done under a different banner - just as the supermarkets (Waitrose/Wholefoods through to Aldi/Lidl) segment their offering to different groups of consumers based on differing quality/price ratios.

[renewed1] 07/11/2019 10:25

UK On the other hand the quality of the cards at card factory is quite poor.
Clintons and even many of the charity shops have much better quality christmas cards and tyhe prices arn't that much higher.I've bought our christmas cards from a couple of charity shops this year having spent time going through card shops offering. I did the same last year....annoying as I have a lot of card shop shares and feel they are missing an opportunity in the market. They've surely got space for an upmarket section!!!

[ukneonboy] 07/11/2019 09:26

A tale of 2 retailers - Card Factory v Clintons
===============================================

Although this is hardly scientific proof, it does however speaks volumes to me.

I needed a birthday card and a helium balloon for an elderly relative so (yesterday) I decided to visit both of our "local" Greetings Cards retailers.

What a difference.................the Card Factory store was very busy (plenty of footfall - selling Xmas Cards, Greetings Cards, Novelties and of course, Helium Balloons.

By comparison, the Clintons Cards store was empty - hardly had any customers and I didnt see anybody actually buy anything.

So, on that basis, I reckon Card Factory is gonna do great business in the run up to Xmas, if this scenario is replicated throughout the whole of the UK.

[fizzypop] 07/11/2019 08:43

Now ex-div hence the fall.

[ukneonboy] 05/11/2019 17:31

On the basis that rival Clinton Cards is in financial difficulties and is currently trying to re-negotiate rents, the future prospects for CARD FACTORY PLC look particularly good approaching the Christmas Card buying season.

Buying shares in Card Factory PLC now guarantees a 5p special dividend plus the usual 2.9p dividend - both payable in mid-Dec 2019.

Official Ex Div date is Thurs 7th Nov 2019 - so income seekers dont delay buying !!!

[rovi70] 05/11/2019 13:37

nice, go card.

[rovi70] 05/11/2019 13:37

nice, go card.

[woodhawk] 04/11/2019 17:33

FWIW My local Clintons shut down a few months back - but the Card Factory that was almost opposite seems to be going great guns without the in-your-face competition.

[makinbuks] 04/11/2019 17:22

Could be, lets hope you live up to your name Wiseman!

[wiseman1967] 04/11/2019 13:35

Hi Makinbuks. When the number 2 player in the market closes stores the number 1 can expect to pick up a decent proportion of their sales - so I see it as positive for CF.

[makinbuks] 04/11/2019 13:03

Not sure if that's an opportunity for CARD or an indication of how tough things are

[minerve 2] 01/11/2019 22:11

Good find spoole5. Thanks.

[spoole5] 01/11/2019 21:29

https://news.sky.com/story/shop-closures-on-the-cards-as-clintons-holds-landlord-talks-11851051?dcmp=snt-sf-twitter

[peteret] 01/11/2019 14:06

Mms walking this down

[fizzypop] 28/10/2019 11:40

Interim + Special ex-div on 7 Nov paid 19 Dec (7.9p) just in time for Christmas.

[woodhawk] 11/10/2019 18:23

An excellent day, Fizzy. Very good rises here, SCPA and GVC too!

[luderitz] 03/10/2019 20:35

I suppose this "only one person serving" policy suits in terms of efficiency? that's how it looks in most Card shops when I'm passing.

[fizzypop] 28/9/2019 11:00

Agreed 827 total Aldi UK stores.

[bbonsall] 27/9/2019 20:20

“We initially trialled 12 stores with Aldi, with this trial being subsequently extended to over 130 stores for a nine-month period. During the trial, we have seen no evidence of cannibalisation to existing stores and we have now agreed a one-year rolling agreement with Aldi to supply half of their UK estate, currently totaling 440 stores. This represents a new impulse purchase sales channel for the Group, commencing in November 2019.”
From this extract from Karen Hubbard’s report it could be interpreted that the total number of Aldi stores is 440 of which Card is appearing in half of them.
I have found that 440 stores represents half of Aldi stores.
So we are displaying in 440 stores from November, up from 130. So a much bigger exposure in Aldi than some might have thought from misinterpreting the statement.

[fizzypop] 25/9/2019 11:34

Up 7% this morning

[fizzypop] 25/9/2019 08:59

Nice recovery underway late yesterday and early this morning. Just give it time.

[wiseman1967] 24/9/2019 22:23

Fair enough.

[woodhawk] 24/9/2019 20:39

You're talking about ONE day, Wiseman. I think a little patience might be in order? The funds don't necessarily move like greased lightning and it is they, not nimble little retail investors like us, that will drive the price. In the meantime, I'll enjoy the spiffing divis!

[wiseman1967] 24/9/2019 17:50

I am surprised how little the share price has increased given the addition of 815 new outlets - 440 at Aldi, 360 at the Reject Shop in Australia and 15 at Matalan. Clearly these will not be the equivalent to new CF stores, but depending on the profit share agreed with each retailer could be very accretive on a profit per card measure. Keen to hear more from management.

[woodhawk] 24/9/2019 17:28

Pretty good summary from Motley Fool today:

"Today’s steady report, and a forecast valuation of 9.7 times earnings, makes it a lot more tempting than the AA, while the yield is a whopping 8.8%, with cover of 1.2. Today, management maintained its special dividend too. The group may struggle for earnings growth in the current climate, but the yield could bring many happy returns."