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I'm not doubting any of the above my point was just to correct the initial statement that somehow the reduction in moonpig revenue will go to card. My point was that statement misunderstands the FY19 positions (where card operated at full capacity)
I never stated a view as to say Moonpig would steal directly from Card
"CF expect it to remain stable until 2024" - this is actually the same source and it's a slight decline. They just posh it up with "stable" as they model price to offset fall in volumes
I think online web is fine. It's the app which is the moat. 6 million downloads last year alone is very impressive. Card did 180k? And Card's app is awful
The product is constantly in the wrong places it's upsetting and needs more investment
supply and of course more importantly demand
I agree Lorenzo and I couldn’t understand why they aren't using this high St presence to push the on line offering. The reason is quite simple though in that they haven’t (yet) got the infrastructure behind them to service the potential supply and it could backfire.
In a recent RNS it was mentioned that a new computer system is scheduled to be implemented this year and expansion will be designed into this Im sure.
The Wrks went through a similar exercise last year and that is why I’m hoping DH gets involved once he leaves there in Sept.
This share has got multi bagger written all over it IMO from here. We just have to be patient.
Danl90,
MoonPig may expect the market to shrink, but CF expect it to remain stable until 2024, giving us ample opportunity to expand the business in other ways (as we are currently doing). The U.K. greeting card market, according to CF, is valued at £1.3 billion, so I wouldn’t panic just yet, especially when you consider how much of our revenue comes from our gifts. Moreover, MoonPig’s statement evidences that there is demand for purchasing greetings cards online, which should have a positive impact on our future online sales. What moat does MoonPig have that we can’t compete with? We can produce cheaper cards and we have a large physical presence that we can use to advertise our website for pennies. As I’ve said on this BB several times before, if I was the CEO of CF, I’d focus a lot of my efforts on online expansion (whilst keeping the high street as the main earner), as I think the self-cannibalisation would be minimal
Ha fair enough
"but the 100m could be from the forecasted increase to personalised cards n gifting that people are increasingly doing, it's becoming more mainstream" - on this though it's worth reading the commercial DD report (it's on moonpigs website. Market is forecast to steadily decline)
Noticed in the tesco stores I use they have recently massivlely expanded the areas for cards so they are also looking to make a charge
On average a quality card is £3 vs £1.59 in Card so value shopping will still shine. I also think people "pop into" a card store as part of the fun of browsing
yeah your right dan, I was just having a laugh, but the 100m could be from the forecasted increase to personalised cards n gifting that people are increasingly doing, it's becoming more mainstream. So hopefully that 100m that moonpig are talking about is not all from our pocket...
But another plus is that we run the budget card scene in stores, this will always thrive, but now we are making in-
roads to online personalisation as should hopefully start ramping up those sales. I think we are only doing a fraction of what moonpig are doing at the moment, but you have to start somewhere....
Sorry by “they” I mean moonpig
So yeah while it comes from selling cards the market is finite so you have what’s called “market share”. This is how much of the market you have
Moonpig think their share will go up £100m so from who does that “share” come from?
Easy enough to understand?
.... I dunno Steve..... seems a bit far-fetched that Card Factory have made some money from selling cards of all things...
LOL
“But they are still saying £100m up from FY19 so where does that £100m come from?”
At a guess I would say from selling cards.
I'm bailing at a small loss. I don't like the lack of an update.
But they are still saying £100m up from FY19 so where does that £100m come from?
I think their next RNS on trade will be very positive.Looking at moonpigs results yesterday and their trading forecast for the year shows a massive decrease on last years trading,most of this will go to card so it should be a bumper year