Card Factory’s sales growth boosted by rapid store expansion

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Card Factory update

Card Factory’s total sales grew by 6.7 per cent in the nine months to October 31, driven by its continuing store expansion scheme.

The greeting cards retailer said a strong first half sales performance continued in the third quarter, driven mainly by growth in lower margin non-card categories.

Eight net new UK stores were opened in its third quarter, bringing a total of 38 net new UK store openings in the year to date.

This brings the total number of Card Factory stores in the UK to 903, a significant uplift compared to the 860 stores it had in the same time last year.

The retailer added that it remained on track to deliver approximately 50 net new UK stores in the current financial year and, in line with previous years, it has started to build a pipeline of new store opportunities for the next financial year.

The retailer’s two ecommerce sites – gettingpersonal.co.uk and cardfactory.co.uk  – also continued to grow and attract increased visitor numbers.

“As previously stated, the business faces ongoing external pressures such as foreign exchange and national living wage, which will continue to impact our margin for the remainder of the year and into FY19, despite the mitigation initiatives we have put in place,” chief executive Karen Hubbard said.

“Nevertheless, we go into the important final quarter with an exciting and extended Christmas offer and remain confident that our quality and value credentials will continue to resonate well with our customers, with the added benefit of EPOS and contactless in every store.”

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