Table of Contents
Executive Summary
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- The market
- Resilient market for greetings cards
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- Figure 1: Consumer spending on greetings cards, 2013-23
- Growth of the personal stationery market has been driven by style
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- Figure 2: Consumer spending on personal stationery, 2013-23
- Single cards dominate the market
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- Figure 3: Consumer spending on greetings cards, by segment, estimates, 2018
- Companies and brands
- Card Factory has an impressive track record
- 90% of card purchasers favour bricks-and-mortar shops
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- Figure 4: Distribution of greetings card, by type of retailer, 2018 (est)
- Mixed fortunes for stationery retailers
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- Figure 5: Distribution of personal stationery, by type of retailer, 2018 (est)
- The consumer
- Birthdays are the biggest driver of card sales
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- Figure 6: Purchases of greetings cards, February 2019
- 74% think their greetings card shopping has stayed the same
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- Figure 7: Changes in shopping patterns for greetings cards, February 2019
- People will always buy for family members
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- Figure 8: Recipients people would always buy cards for, February 2019
- Card shops and supermarkets are the most used types of retailer for greetings cards
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- Figure 9: Type of retailers used for buying greetings cards, February 2019
- Card Factory has potential to increase share in London
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- Figure 10: Greetings card retailers used in the last 12 months, February 2019
- Card purchasing patterns shaped by convenience
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- Figure 11: Factors influencing choice of card retailer, February 2019
- 16-24s are most inclined to buy personal stationery
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- Figure 12: Bought any personal stationery in the last year, by age, February 2019
- WH Smith is the most used retailer for personal stationery
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- Figure 13: Retailers used for personal stationery in the last year, February 2019
- Stationery shoppers are price-sensitive
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- Figure 14: Factors influencing choice of retailer for personal stationery, February 2019
- What we think
Issues and Insights
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- Online shopping for cards and stationery will grow
- The facts
- The implications
- Will shoppers for cards and stationery become more price-sensitive?
- The facts
- The implications
- Will supermarkets continue to grow market share of cards and stationery?
- The facts
- The implications
The Market – What You Need to Know
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- Greetings card market is resilient
- The stationery market is driven by style
- Single cards account for more than 80% of spending
- Card shops capture almost 44% market share by value
- Print-on-demand reaches 7%
- Grocers benefit from convenience
- Population growth is slowing
- Internet use has grown rapidly
- Desktop and laptop computers favoured by online shoppers
Market Size and Forecast
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- Resilient market for greetings cards
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- Figure 15: Consumer spending on greetings cards, 2013-23
- Little growth expected between 2018 and 2023
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- Figure 16: Consumer spending on greetings cards, at current and constant 2018 prices, 2013-23
- Growth of the personal stationery market has been driven by style
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- Figure 17: Consumer spending on personal stationery, 2013-23
- Tough forecast conditions for stationery
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- Figure 18: Consumer spending on personal stationery, 2013-23
- Forecast methodology
Market Segmentation
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- Cards are an individual thing
- Personalising cards
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- Figure 19: Consumer spending on greetings cards, by segment, 2018 (est)
- Print-on-demand has shown strong growth
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- Figure 20: Consumer spending on greetings cards, 2013-18
- Christmas and Spring Season cards can add value
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- Figure 21: Single cards, share by value, 2018
- Personal stationery sales growth slows
Channels to Market
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- Card shops capture almost 44% market share by value
- Print-on-demand operators improve share
- Grocers benefit from convenience
- Life for independents
- Other retailers
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- Figure 22: Distribution of greetings cards, by channel, 2014-18 (est)
- Grocers grow share of personal stationery
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- Figure 23: Distribution of personal stationery, by channel, 2014-18 (est)
Market Drivers
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- Population growth is slowing
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- Figure 24: Population of the UK, 2013-23
- Over-55s show highest rate of growth
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- Figure 25: Population of the UK, percentage change, by age band, 2013-23
- 30% of the population are over-55s
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- Figure 26: Age profile of the UK population, 2018
- More than 90% of 16-64s use the internet
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- Figure 27: Internet used in the last 3 months, by age band, 2013 and 2018
- Desktop and laptop computers favoured by online shoppers
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- Figure 28: Shopped online in the last three months, by device, September 2018
- Plenty of occasions for greetings
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- Figure 29: Births, marriages and deaths, UK, 2013 and 2017
- Welcome to your new home
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- Figure 30: UK housing transactions, 2014-18
- Welcome to your rented home
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- Figure 31: Time in current home, by tenure, November 2018
- Graduations, driving tests and more
- Back-to-school stimulates stationery spending
- Seasonal purchases attract a large audience
Companies and Brands – What You Need to Know
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- Card Factory is the largest greetings chain
- High growth for online sellers
- Rapid growth at Smiggle and The Works helped by new store openings and online growth
- Troubled retailers in greetings and stationery
- Like-for-like sales growth is proving elusive
- WH Smith’s retail mix is changing
- Print-on-demand sellers grow share
Companies and Brands
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- Broad sector with variety of retail formats
- Tough competition in the card market
- Star performances by online sellers, new entrants and The Works
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- Figure 32: Leading greetings cards and stationery retailer revenues, 2013-18
- Changes of ownership and store closures
- Administration for Office Outlet
- WH Smith pulls the plug on Cardmarket
- Paperchase enters CVA
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- Figure 33: Leading greetings card and stationery retailers, store numbers, 2013-18
- Crucial for retailers to grow store productivity
- Ryman’s stores have achieved steady growth
- Sales per outlet fall at WH Smith as travel increases share of the business
- Paperchase’s sales per outlet influenced by growth of online
- Card retailers see static sales per outlet
- Scribbler, Tiger and Smiggle grow store productivity
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- Figure 34: Leadings greetings card and stationery retailers, sales per store, 2013-18
Market Share
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- Market share of greetings
- Card Factory edges ahead, as WH Smith and Clinton lose share
- WH Smith’s retail mix is changing
- Print-on-demand sellers grow share
- Paperchase has held market share
- Cards Galore and Scribbler mark time, while Smiggle grows market share
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- Figure 35: Greetings cards market share, by value, 2013-18
- Market share of personal stationery
- WH Smith is the leading retailer for personal stationery
- Office Outlet has lost share
- The Works grows strongly
- Smiggle has strong appeal to kids
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- Figure 36: Personal stationery market share, by value, 2013-18
- Pen Shop is the largest pen specialist chain
Competitive Strategies
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- WH Smith trialling new store concepts
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- Figure 37: WH Smith, high street shop, 2019
- Card Factory has grown through new store openings
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- Figure 38: Card Factory shop, 2019
- Paperchase launches CVA with a view to cost savings and closures
- Clinton Cards all fully rebranded
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- Figure 39: Clintons, typical shop, 2019
- Moonpig rebranded to be less gimmicky and emphasise its personal touch
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- Figure 40: Moonpig, new identity, 2017
Launch Activity and Innovation
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- Paper planners continue to be relevant
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- Figure 41: Perfect Planner Diary Accessories, Busy B, 2019
- Journaling stationery increasingly popular
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- Figure 42: Journal, by allsorteduk.com, 2019
- Overlapping styling between cards and stationery
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- Figure 43: Example of modern calligraphy, 2019
- Redesigning everyday pens
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- Figure 44: bLen pen, Zebra, 2019
- WH Smith injects more style
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- Figure 45: WH Smith, stationery collections, 2019
Advertising and Marketing Activity
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- Relatively small adspend for the sector
- Advertising spend falls by a third in 2018
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- Figure 46: Total above-the-line, online display and direct mail advertising expenditure on greetings cards and stationery, 2014-18
- WH Smith accounts for more than 20% of spending
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- Figure 47: Above-the-line, online display and direct mail advertising expenditure on greetings cards and stationery, selected retailers, 2014-18
- 59% of spend is on television
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- Figure 48: Above-the-line, online display and direct mail advertising expenditure on greetings cards and stationery, by media type, 2018
- Advertising specifics
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- Figure 49: Moonpig, television advert (still) for Mother’s Day, 2019
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 50: Attitudes towards and usage of selected brands, April 2019
- Key brand metrics
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- Figure 51: Key metrics for selected brands, April 2019
- Brand attitudes: Card Factory stands out for good value
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- Figure 52: Attitudes, by brand, April 2019
- Brand personality: Scribbler and Paperchase are fun brands
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- Figure 53: Brand personality – macro image, April 2019
- Card Factory has a basic image
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- Figure 54: Brand personality – micro image, April 2019
- Brand analysis
- Card Factory is an outstanding brand with broad appeal
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- Figure 55: User profile of Card Factory, April 2019
- Brand analysis
- Paperchase is stylish, fun and worth paying more for
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- Figure 56: User profile of Paperchase, April 2019
- Brand analysis
- Scribbler is fun and innovative
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- Figure 57: User profile of Scribbler, April 2019
- Brand analysis
- WH Smith is widely known, trustworthy and offers good value for money
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- Figure 58: User profile of WH Smith, April 2019
- Brand analysis
- Hallmark enjoys high levels of awareness
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- Figure 59: User profile of Hallmark, April 2019
- Brand analysis
- Clintons is fairly well trusted but lacks differentiation
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- Figure 60: User profile of Clintons, April 2019
- Brand analysis
The Consumer – What You Need to Know
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- Birthdays are the biggest driver of card sales
- 74% think their greetings card shopping has stayed the same
- Family members are always remembered with greetings cards
- Card shops and supermarkets are the most used types of retailer for greetings cards
- Card Factory has more potential in the London area
- Card purchasing patterns shaped by convenience
- 16-24s are most inclined to buy personal stationery
- WH Smith is the most used retailer for personal stationery
- Stationery shoppers are price-sensitive
Greetings Card Purchases
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- Birthdays are the biggest driver of card sales
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- Figure 61: Purchases of greetings cards, February 2019
- Broad spread of card shoppers
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- Figure 62: Purchases of greetings cards, repertoire of occasions, February 2019
- Those buying for fewer occasions tend to be younger
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- Figure 63: Purchases of greetings cards, repertoire of occasions, by occasion, February 2019
Changes in Shopping Patterns for Greetings Cards
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- 74% buy about the same number of greetings cards as a year ago
- Older shoppers are set in their ways
- Cards are not essential to those in financial difficulties
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- Figure 64: Changes in shopping patterns for greetings cards, February 2019
Recipients People Would Always Buy Cards For
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- People will always buy for family members
- Cards for friends a more feminine thing
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- Figure 65: Recipients people would always buy cards for, February 2019
Type of Retailer Used for Buying Greetings Cards
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- Card shops and supermarkets are the most used types of retailer for greetings cards
- Online sellers popular with Millennials
- Gift shops attract 16-24s
- Families with children most inclined to buy at supermarkets
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- Figure 66: Type of retailers used for buying greetings cards, February 2019
- 41% of card shoppers use one type of retailer
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- Figure 67: Type of retailers used for buying greetings cards, repertoire, February 2019
- Card shops are a destination for greetings
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- Figure 68: Type of retailers used for buying greetings cards, February 2019
Greetings Card Retailers Used in the Last 12 Months
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- Card Factory is weakest in the London area
- Upscale bias to Clintons shoppers
- Independents capture 16%
- 24% of 25-34s used Moonpig
- Paperchase most used by 16-34s
- WH Smith is popular for greetings cards
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- Figure 69: Greetings card retailers used in the last 12 months, February 2019
Factors Influencing Choice of Card Retailer
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- Price and convenience shape shopping choices
- Older shoppers rate convenience more highly
- Men appear more interested in humorous cards
- 16-24s like to personalise card designs
- Older and more affluent shoppers like to support charities
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- Figure 70: Factors influencing choice of card retailer, February 2019
Retailers Used for Personal Stationery
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- 16-24s are most inclined to buy personal stationery
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- Figure 71: Bought any personal stationery in the last year, by age, February 2019
- Supermarkets lead the way
- WH Smith is a powerful player
- Rise of the discounters
- Amazon has a major position in stationery
- Ryman appeals to male shoppers
- Paperchase captures a young, affluent shopper group
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- Figure 72: Retailers used for personal stationery in the last year, February 2019
- Little breadth of shopping habits for personal stationery
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- Figure 73: Repertoire of retailers used for personal stationery in the last year, February 2019
- 14% just used one retailer for personal stationery
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- Figure 74: Retailers used for personal stationery in the last year, by repertoire of retailers used, February 2019
Factors Influencing Choice of Retailer for Personal Stationery
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- 35-54s are concerned about price
- Fashionable or classic styling?
- Online shopping has wide appeal
- Power of brands
- Older shoppers choose stationery as gifts
- Child appeal is a key driving force
- Personalising has two key audiences
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- Figure 75: Factors influencing choice of retailer for personal stationery, February 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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