Card Factory posts sales rise helped by store openings

Card Factory’s like-for-like sales advanced 0.9% in the nine months of the year to October 31 but were down 0.4% in the third quarter when weak footfall took a toll.

New stores helped the specialist retailer grow its top line – 38 net new stores have opened in the year to date. The business has also been rolling out a presence in Aldi’s UK stores and expects to be in 440 of the grocer’s branches by the end of the month.

CardFactory.co.uk sales were up 16.2% in the third quarter and 21.9% in the year to date. The retailer will launch a new platform and website later this year.

Card Factory reported that it continues to confront cost pressures such as National Living Wage but has a range of initiatives in place to address those. Investment in the supply chain should bring savings in the second half.

Chief executive Karen Hubbard expected full-year profits to be “broadly in line with its previous expectations”.

She said: “I am pleased with our year-to-date performance. Our ongoing focus on customer experience, and the quality and range of our card and complementary non-card products, has led to an increased average spend both in stores and online.

“This has helped us to substantially offset the effect of the lower high street footfall experienced in the quarter and the corresponding impact on our like-for-like sales.

“We remain on track with our new store rollout and are focused on pursuing other new growth opportunities and retail partnerships to extend our market penetration in the UK and overseas.

“Our quality/value proposition and new product ranges give us confidence that we are well-positioned to deliver a good performance in our key quarter-four trading period.”