Monday, October 13, 2014

News: Card Factory planning to open second Rotherham store

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Growing Yorkshire-based card retailer, Card Factory is planning to open another store in Rotherham as part of its ambitious expansion plans.

Card Factory is the UK's leading specialist retailer of greeting cards. Having opened its first store in Wakefield in 1997, it has grown consistently year on year and now operates from over 700 stores across the UK.

The company floated on the London Stock Exchange earlier in 2014 with the aim of opening up to 1,200 stores in total over the next ten years.

Now, the Wakefield-based firm has submitted a planning application for alterations to a vacant unit at the Tanyard in Wickersley that would see the second Card Factory in the borough, following the first on College Street in Rotherham town centre.

Card Factory is a multi-price point value retailer principally offering single cards at various price points of less than £1. The high returns business model means that stores can operate profitably in a wide range of locations and demographics from major centres, retail parks, suburbs of major urban areas and affluent towns.

Although new store opening opportunities are expected to have, on average, lower sales potential than the average of the group's existing store locations, primarily due to the new stores typically being in lower footfall locations than the average of the existing stores, the directors believe these new stores will nevertheless enhance earnings and profits.

For the six months ended July 31, revenues rose 8.9% to £149.4m with underlying profit rising 9.3% to £26.1m for the period.

In announcing the results last month, Richard Hayes, CEO at Card Factory, said: "In the first half of this year, 37 new stores were opened and one closed, bringing the total estate to 749 stores as at 31 July 2014. Five stores were relocated during the period.

"We are pleased with the quality of our new store openings and their performance to date.

"The Group continues to have a strong pipeline of additional new store opportunities and remains confident of opening a total of approximately 50 net new stores in the current financial year, in line with the average historic opening rate over the last decade.

"The Board remains confident of the potential to expand the store portfolio to up to 1,200 stores in total."

Card Factory website

Images: Card Factory

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