Greeting card retailer Clinton Cards has defied the expectations of market analysts to post a year on year rise in sales in the run-up to Christmas. Many had predicted that the retailer, which has around 800 High Street commercial properties, would be one of the festive season’s big losers given the competition from supermarkets and online card company MoonPig. However, Chief Executive, Darcy Willson-Rymer, who until recently ran Starbuck’s UK business, said making changes in how the stores were run during November and December had made a difference to performance.
Clinton Cards reports that sales at its High Street commercial properties rose by 0.4% year on year in the five weeks up to January 1. This is a small but marked improvement on the fall of 2.4% in the sixteen week period prior to November 20 which had led to the analyst’s gloomy predictions. It also marks a promising start for Mr Willson-Rymer who has promised to revamp the company’s stores which he believes are dated and inefficient.
Mr Willson-Rymer has not yet had enough time in the job to make significant strategic changes and so he concentrated on small details in order to make an impact. He says; “It was about having daily sales reviews and working out what were the bestsellers, moving stock around, making sure we had the right numbers of people in stores in the right places.” His aim is to improve the range of products in the stores along with customer service. He explains; “Since I joined Clinton’s we have a single-minded focus on the customer. Our Christmas trading update recognises the positive impact of this approach.”
He concedes that he faces a tough job in the current economic climate but he believes people will always want to buy greetings cards for family and friends. “It’s a £1.5 billion market and it’s very robust,” he said. Following the pleasing results Mr Willson-Rymer will now have the time to conduct a thorough strategic review of the business. He hopes the findings won’t involve the closing of large numbers of High Street commercial properties: “I don’t see wholesale closures, but I think we’ll see a change in the portfolio,” he said. Last year Clinton Cards, which also operates the Birthdays brand, closed around 60 of its outlets.
The Results from Clinton Cards along with those of JJB Sports and John Lewis, who have also announced a jump in Christmas sales, contrast with those of other High Street retailers who have seen a fall. This suggests that there is no clear pattern and that trading conditions for High Street commercial properties remain volatile. A point that analysts are keen to stress is that an increase in sales does not necessarily equate to an increase in profits, particularly if the retailer is offering big discounts in order to generate sales. But nevertheless, Christmas doesn’t appear to have been as dire for retailers as many analysts and commentators expected.
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