18 minute read
Retail Barometer
Back In The Game
Inset: For many indies, the last year was pretty good seeing them very much getting back in the game!
While not denying the challenges, the last year has seen independent greeting card retailers fight back with a vengeance, making the most of the ongoing ‘shop local’ sentiment from the public, enhanced by the continued ‘working from home’ pattern, with 65% of respondents not only reporting growth over the last year, but by some impressive increases.
With all to play for in the coming year, PG rolled the dice and delved deep into the findings of the PG Retail Barometer, the annual survey into the health and wealth of the independent greeting card retailer.
The PG Retail Barometer is an annual survey of independent greeting card retailers. This latest survey includes both independent retailers who are Cardgains members (accounting for 1,000 rooftops) as well as those who are not a member of the buying group. All surveys were completed by 7 January 2022.
How Was Business 2021 v 2022?
22% Same 13% Worse
65% Better
Encouragingly those indies who did experience growth in the last year saw their sales expand considerably. Some 38% of those
who reported sales growth revealed they were up 10%-
20%, with 18% saying they were up 20%-30%. Almost a third were up by up to 10% while at the other end of the scale, 14% were up more than 35% compared to the previous year.
For the periods you were able to trade, what happened to the average spend per customer
19% Remained The Same 9% Declined
51% Increased Slightly 21% Increased Significantly
Business boons
For the second year in succession, the ‘shop local’ drive has served indies well, with this being cited as having been the biggest boon to their trade in the last 12 months by 69% of respondents.
Greeting cards continued to hold their own as a very relevant and tangible way of communicating with loved ones with some 60% of respondents in no doubt that the consumer’s appreciation of greeting cards grew over the last year.
All the improvements that retailers made to their shops’ displays during the imposed lockdowns also came good, with indies recognising this as having been the second most potent contributor to their shops’ performance, with social media presence and staff also up near the top of the tree.
Going a long way towards offsetting a drop in footfall, some 72% of indies experienced an upturn in the average spend, with customers buying more when they did venture out shopping.
2021 v 2020
65% Better 22% Same 13% Worse
2020 v 2019
19% Better 16% Same 65% Worse How has your business fared over the last year?
PG looks back at the last eight years of PG’s Retail Barometer data.
2019 v 2018
31% Better 38% Same 31% Worse
2018 v 2017 2014 v 2013
Better 37% Better 48% Same 31% Same 32% Worse 32% Worse 20%
2017 v 2016 2015 v 2014
Better 38% Better 52% Same 27% Same 44% Worse 35% Worse 4%
2016 v 2015
Better 30% Same 38% Worse 32%
What main factor(s) had a positive effect on your business in the last year? (Previous year’s position in brackets)
1st The ‘Shop Local’ Support (1st) 2nd Improvements in shop displays (7th) 3rd Social media (2nd) 4th Staff (5th) 5th Website/online activity (4th) 6th Broadening card selection (9th) 7th Broadening gift selection (10th) 8th New customers (3rd) 9th Shop improvements/refits (8th)
10th Promotional activity/Click & Collection/Home
delivery (6th) 11th = Winning an award/resultant PR (16th) 11th = Local competition closing down (13th) 12th Improvements in service from suppliers (=11th) 13th = Collaborations with local businesses/groups (=11th) 13th = Increasing prices (=12th) 14th Participation in online platforms (eg Trouva, Faire) (-) 15th Opening an additional store/expanding/pop-up (17th)
How do you feel the consumer’s appreciation of greeting cards has shifted over the last year?
18% Increased Significantly 42% Increased Slightly 32% Remained The Same 8% Declined 0% Declined Significantly
Below: The disruption to the supply chain, not helped by shipping delays, has caused problems for indies as well as suppliers.
The big downers
No surprise that the effects of the ongoing pandemic, was the top reason indies cited as having had a detrimental effect on their business. However, going straight in at ‘number two’ of business banes has been the disruption caused by the supply chain, with the resultant delays and shortages (admittedly more on the gift front than cards) causing headaches for retailers as well as suppliers. Trade post Brexit has also had a negative knock on to indies with the delays at ports due to the new requirements for importers also adding to the uncertainty.
Supermarkets continue to be a major thorn in the side of indies, their improved displays and convenience being a sizeable niggle. While some old chestnuts, such as parking and discounters still feature in the list of downers, they have dropped down the league in light of bigger issues.
Business predictions for 2022
Indies have started 2022 full of vigour and no mistake, with 71% setting their sights on business growth in the coming year, a big jump up from the 41% who were expecting to grow this time last year.
While 8% are aiming high, gunning for ‘significant growth’ the vast majority (63%) are realistic that their expansion will be marginal.
Much more positive than previous years, only 6% are bracing themselves for a decline in trade, a big improvement on last year’s Barometer when 21% of respondents were expecting to experience a drop in business.
Looking further ahead to the next 10 years, the last 12 months’ experiences have definitely made indies feel more positive about the role of the independent card retailer, with 65% seeing it as having a real future, with only 9% seeing the long term future as weak (two years ago this figure was 30%!).
Expectations for your business for 2022?
23% Remain About The Same 5% Slight Decline 1% Major Decline
8% Significant Growth
63% Marginal Growth
What main factor(s) have had a detrimental effect on your business this year? (Previous year’s position in brackets)
1st Covid-19 (1st) 2nd Disruption in supplies (-) 3rd The UK retail economy (2nd) 4th Expansion of cards in supermarkets (3rd) 5th Competition from multiples (4th) 6th Brexit decision (13th) 7th Online activity (6th) 8th Business rates (14th)
9th Reduction in service from suppliers/reps/
agents (11th) 10th Parking issues (5th) 11th = Minimum Wage (7th) 11th = Charity shops selling greeting cards (8th) 12th Consumer lethargy/uncertainty (12th) 13th Empty shop units in the vicinity (9th) 14th = Expansion of value/discount retailers (9th)
14th = Expansion of the online retail platforms (eg
Trouva, Faire) (-) 15th Rent review (15th) 16th Print on demand cards (10th)
How do you view the future of the independent card shop in the next 10 years?
9% Weak 3% Very Weak
22% Neutral
13% Very Positive
53% Positive
Threats and opportunities
Even now we are (hopefully) through retail lockdowns, supermarkets are seen as much more of a threat to an independent card retailer than Amazon, print on demand card operators and garden centres.
Some 72% of indies view the grocers as a real concern with 28% going so far as to view them as a ‘serious threat’. Two years ago only 17% of indies viewed them in this way.
Amazon looms high as a threat for 54% of indie respondents, especially given increasing numbers of publishers as well as retailers are tapping into the online giant’s agility in responding to the whims of the consumer seeking the ultimate convenience of shopping from their sofas.
Staying in the digital space, immense product selection and marketing muscle has seen Moonpig, Thortful, Scribbler (and other print-on-demand operators) take a larger slice of the greeting card cake, with 53% of indies, more than ever before (up 10% on last year’s findings) now viewing them as a real threat to their business.
Garden centres continue to niggle 39% of indies, though this percentage has dropped from last year’s Barometer findings (a reflection of garden centres being able to trade while indie card shops were not during lockdowns).
Despite the fact that Card Factory is the UK’s market leading player it is as though indies have learned to co-exist, now with only 32% of respondents viewing the chain as a threat. Two years ago, this figure was up at 41%.
How do you view the supermarkets’ expansion on the greeting card front?
28% Serious Threat 44% Threat 27% Neutral 1% Bonus
Above: Indies see supermarkets as more of a threat than ever. Below: Indies have learned to coexist with Card Factory.
How do you currently view Card Factory?
8% Serious Threat 24% Threat 68% Neutral 0% Bonus
How do you view Moonpig, Thortful, Funky Pigeon and other print-on-demand operators?
13% Serious Threat 40% Threat 44% Neutral 3% Bonus
How do you currently view garden centres?
15% Serious Threat 38% Threat 45% Neutral 2% Bonus
How do you currently view Amazon?
22% Serious Threat 32% Threat 45% Neutral 1% Bonus
Above: The Amazon uptick logo does not make indies smile!
Do you feel the increased price of stamps affects your card sales?
30% Not be affected 9% Decrease dramatically
61% Decrease marginally
What is your feeling about the number of Christmas cards people sent in 2021?
25% More than previous year 32% Same as previous year 43% Fewer than previous year
More please…
When asked which card categories indies would like an increased choice, once again it is more of the funny stuff they are after! After humorous cards, continuing the trend of last two years’ Barometers, it is male cards.
After that though it is in relations and occasions that there is a real appetite for more. New for this year is a thirst for more designs that reflect diversity and inclusion (a cry out from 19% of respondents) while, chiming with the return of celebratory gatherings, there is an urge for more age cards, especially for adults. as well as a potential for more high end handmade/hand-finished cards having been clocked.
On the specific caption front, continuing a trend of the last few years it is ‘greatness’ that is being called for - Great Grand-daughter, Great Great Nan etc. Other common pleas from indies are for more cards that reflect blended families, as well as better designs for the LGBT+ community as well as those reflecting diversity.
Growth indicators
The power of laughter and a greeting card’s ability to cheer someone up continues to be reflected in the Barometer findings, with humorous cards topping the greeting card charts for indies as being the card category that showed the largest growth over the last year compared to the year previous.
Other industry ‘stalwarts’ that are the backbone of many indies’ card racks, that of occasions and relations cards held firm in the second position, shared by traditional words and sentiments cards.
An encouraging new entry into the list this year is for cards reflecting diversity and inclusion, while supportive friendship/thinking of you cards are still very much in the heart of the list of performers for indies.
1st Humour (1st) 2nd = Relations and occasions (2nd) 2nd = Traditional words & sentiment (4th) 3rd = Christmas packs or boxes (3rd) 3rd = Christmas card singles (5th) 4th Contemporary trend (7th) 5th Friendship/Thinking of you (6th) 6th Handmade or Hand-finished (9th) 7th Art (8th) 8th Diversity and Inclusion (-) 9th Children’s (12th) 10th = Photographic (10th) 10th = Father’s Day (=13th) 10th = Male (11th) 11th = Mother’s Day (=13th) 12th Cute (14th) 13th Easter (15th) 14th Licensed (16th)
On the slide
Not surprisingly given the lockdowns at the start of 2021, the early Spring Seasons came in for a bit of a battering on the sales front, Valentine’s Day suffering more than most. Though it will be next year’s Barometer findings which should show a truer picture of negative shifts in any genre.
1st Valentine’s Day (2nd) 2nd Easter (1st) 3rd Father’s Day (6th) 4th Mother’s Day (4th) 5th Weddings (-) 6th Photographic (8th) 7th Licensed (5th) 8th Cute (3rd) 9th Children’s (10th) Above: It was a case of love 10th Christmas card boxes (7th) labour’s lost last Valentine’s. 11th Christmas singles (=9th) 12th =Handmade or Hand-Finished (=9th) 12th =Traditional words and sentiments (=9th)
Driving for sustainability
Not surprisingly, concerns about the environment and playing their part in sustainability of the planet featured strongly for indies in the last year. Over eight out of ten (82%) of respondents said environmental considerations had played a part in card buying over the last year, with 16% saying that sustainability concerns had ‘greatly’ affected the buying decisions.
Reducing the number of cellowrapped cards came out tops on the sustainable improvements front for indies, with the continued reduction of plastic bags up in second place for the second year in succession.
Most notable perhaps is that this last year has seen a dramatical decline on the glitter front with almost half (46%) of respondents noting that they are stocking fewer products featuring the sparkly stuff.
Retailers have continued to expand their ranges of ‘eco’ products once again over the last year, though as time progresses it is hoped that this will become more the norm rather than being notable.
To what extent do you think environmental/ sustainability concerns have impacted on card buying in the last year?
Not al all 18%
Greatly 16%
Marginally 66%
What steps did your business take in 2021 on the environmental front?
1st Reduction in cellowrapped cards 75% 2nd Reduction in plastic bags in the shop 60% 3rd Reduction in cards/giftwrap with glitter 46% 4th Expansion of eco-products stocked 43% 5th Increase in cards in compostable bags 38% 6th More vigilant recycling 37% 7th Introduction of paper bags 34% 8th Persuade staff to be more sustainable 19% 9th = Removal of cellowrapped cards 16% 9th = Removal of cellowrapped cards 16% 10th Change of energy provider 6% 11th Introduction of ‘bags for life’ 4%
Going for promotion
Below: Sustainability issues continue to score high on the agenda for indies.
Indies have continued to flex their marketing muscles over the last year, with 62% of respondents having embraced the potential of various promotional activities.
This year it was loyalty initiatives that came out tops, pushing social media action into second place. Physical engagement with customers, through
shopping events as well as initiatives involving the wider community also served indies well on the promotional front.
Sale-generating ‘money off’ offers, charity fundraising and collaborations with other businesses also featured in the marketing mix.
Top Promotional Mechanisms Over The Last Year (Previous year’s positions shown in brackets)
1st Loyalty cards/loyalty initiatives (2nd) 2nd Social media (1st) 3rd In-store ‘money off’/discount promotions (3rd)
4th Customer events/private shopping and
competitions (5th) 5th Charity fundraising/community engagement (8th) 6th Collaboration with other businesses (4th) 7th Gift voucher scheme (9th) 8th Press advertising (7th) 9th Free gift promotions (6th) 10th Leaflets (10th)
What local organisations was your business involved with in the last year?
Bira 10% Chamber of Commerce 18% Charities 24% Federation of Small Businesses 24% GCA 20% Just a Card Campaign 22% Local retailers group 51% Local schools 18%
Top right: Museums & Galleries has long invested in its catalogues its 2022 everyday catalogue alone is 190 pages. Right: As one of the first trade shows to go ahead in almost two years, PG Live 2021 was a joyful sourcing experience for indies.
In a word
Positive words far outweighed negative descriptors in the Barometer question which asked indies to select the word they feel best describes the UK greeting card industry today.
The word ‘Resilient’ came out tops, very closely followed by ‘Buoyant’ and ‘Diverse’ though ‘Challenging’ was not that far behind. The top seven POSITIVE descriptors… Resilient, Buoyant, Innovative, Relevant, Creative, Strong, Supportive The top five NEUTRAL descriptors… Diverse, Challenging, Competitive, Entrepreneurial, Necessary The top five NEGATIVE descriptors… Fragile, Tumultous, Flagging, Stagnant, Declining
Sourcing matters
The mutually beneficial relationships that indies have with their agents and reps really came into its own in the last year, with these being their top lifeline to sourcing new products. While online sourcing and ordering is now very much part of an indie’s armoury, with face to face (or Zoom/Teams) meetings with reps and agents now happening the percentage or online ordering has slipped somewhat in the last year. Almost a third (32%) of respondents only place 10% of their orders online, but over a quarter now log on to order 75% of their orders.
Keen to ensure they have a wonderfully fresh product selection 35% of respondents are looking to increase their number of suppliers this year (up from 27% in the previous Barometer), with this not being the year to slim down the supplier list (only an option for 3% of respondents), with the majority (62%) intending to keep the same number.
The role of the catalogue and actual card samples have upped in their importance for indies, with 64% of respondents citing them as ‘very important’ and another 28% seeing them as ‘important’.
There has been a further increase in the last year in interest from indies considering moving to be supplied via brokerage, with 20% giving it the thumbs up as an option (an increase of 7% over the year previous) and around a fifth say they would consider it.
The issue of geographical exclusivity of supply seems to be rather less of a dividing issue than in previous years (with a 50:50 split between those concerned and unconcerned, probably due to the reality of ecommerce meaning the consumer can find products at a touch of a button.
48%
How Have You Sourced Products In The Last Year? (Previous year’s positions shown in brackets)
1st From agents and reps (1st) 2nd From Progressive Greetings (=3rd) 3rd Looking in other shops (5th) 4th From catalogues and leaflets received (2nd) 5th From publishers’ websites (4th) 6th Cards sent to you (6th) 7th Social media (-) 8th Trade shows/exhibitions online sites (8th) 9th Internet platforms (eg Faire, Ankorstore) (-) 10th From the Cardgains’ newsletter (7th) 11th Word of mouth (10th) 12th Feedback from customers (9th)
Would you consider being supplied via a brokerage system?
20% Yes 19% Undecided 61% No
Left: Face to face meetings are far preferred to Zooms or Teams. Right: While one in five indies are considering brokerage, 60% are not. Continued on page 45
How do you view seeing catalogues and actual card samples?
8% Not important
28% Important
64% Very important
As far as the number of suppliers from whom you order, in the coming year do you expect to…
35% Increase the number 62% Remain about the same 3% Decrease the number
How have service levels from suppliers been over the last year?
3% Improved Significantly 21% Improved Slightly 48% Remained The Same 18% Decreased Slightly 10% Decreased Significantly
Above right: Some of the new candle and wellbeing products from Cinnamon Aitch. Below: Online sourcing and ordering is part of life now for indies.
If you place orders online, what percentage?
32% Under 10% 18% Around 25% 23% Around 50% 27% 75% And Above
Do you see your online ordering as likely to increase in the coming year?
36% Increase 56% Remain The Same 5% Decrease 3% Not sure
Is the price right?
There has been something of a shift in retailer’s views on pricing, with more than ever before (15%) now recognising
the merit in RRPs of cards to
increase, but the majority (76%) would like them to remain at 2021 levels. As for the real price ‘pressure points’, continuing the trend of last two years, indies are most fearful of breaking through the £2.99 barrier, with (shown in order of responses) £3.50, £3.99, £1.99, £2.45, £4.25 and £4.50 being the next most sensitive.
In the coming year would you like to see the Recommended Retail Prices (RRPs) of counter cards?
15% Go Up 76% Remain As Now 9% Come Down
Above: Social media is used by over three quarters of indies to promote their shops.
The selection box
On the product diversification front, gifts is back in the top slot, having just pushed sustainable goods down a peg. The big climbers this year are giftwrappings, clothing, confectionery with books, food gifts and handbags making it into the list for the first time.
Into which product areas would you like to further diversify? (Previous year’s positions shown in brackets)
1st Gifts (2nd) 2nd Sustainable products (1st) 3rd Stationery (3rd) 4th Candles and other home fragranced products (4th) 5th Home accessories (7th) 6th Giftwrappings (14th) 7th Impulse items (6th) 8th Wellbeing products (8th) 9th Jewellery (9th) 10th =Clothing (=18th) 10th =Chocolates/confectionery (15th) 10th =Bath and body products (16th) 11th Children’s products (=13th) 12th =Food gifts (-) 12th =Fashion accessories (12th) 13th Books (-) 13th Partyware and balloons (5th) 14th Calendars, diaries (17th) 15th Jigsaws and boardgames (-) 16th Handbags (-) 17th Gardening products (=13th) 18th =Pet products (11th) 18th =Kitchenware and tableware (=18th) 19th Art and crafting products (10th) 20th Advents (-)
Channeling ideas
No surprise that social media was a well-used tool for indies over the last year, with more respondents than ever (77%) now using social media for business purposes.
Over 65% of respondents, a sizeable upsurge year to year, now have a website for their shops.
How do you view texting, emailing or social networking sites as an alternative to greeting cards?
