Card Factory losses mount as coronavirus batters store sales

Store sales in the 11 months to December 31 declined 38.1% year on year, with the retailer’s stores closed on 37% of available trading days.

For the full year to the end of January, Card Factory anticipates a loss before tax of £10m, with sales down 33% year-on-year.

The retailer said recovery following the first national lockdown exceeded expectations, reaching sustained like-for-like growth in early October.

During the lead up to the festive period, from October 1 to November 3 when stores were again closed, Card Factory recorded like for like growth of 17.7%.

The retailer accelerated the launch of its Christmas ranges as customers chose to shop for the festivities earlier this year, which contributed to the positive sales.

Online sales also grew, up 137% on a like-for-like basis on cardfactory.co.uk during the 11-month period, while sister website gettingpersonal.co.uk recorded 10% like-for-like growth.

Executive chair Paul Moody said: “In a year, the like of which none of us has ever experienced before, I am hugely proud of the way in which the Card Factory family has risen to the many challenges faced and want to thank every colleague for their huge commitment.

“We have successfully pursued key strategic aims, including the acceleration of our digital capability, a streamlined and more effective ‘newness’ range cycle, the implementation of a pricing architecture enabling material retail price progression, auto-replenishment and stock management in-store, utilising hand-held technology and bringing ESG to the fore in our decision making.

“Despite the obvious uncertainties in the first half of 2021, I am confident that we have the opportunity to return the business to sustainable profitable growth and will do all that is necessary in the near term to ensure that we can maximise that opportunity.”