Last year 66 Clinton card shops closed as well as 27 Paperchase stores
Last year Card never had the benefit of those closures (as Card was shut too) and when they happened (paperchase -Feb-21 and Clinton’s Nov-19)
LFL in the run up to store closures in lockdown 2&3 were 17% up on 2019. I know this reflects a “boom” from shoppers returning but I also think shows where, on the big events, these store stranded shoppers will end up going. Yes some will go online but some will have to come to Card Factory
Card was 2.9% down on 2019 since the last reopening but as Darcy said there is a negative Easter impact here and also no big event. I think the proof is now in Father’s Day and those store closures will drive people into Card in a big way
Also I really don’t see how Clinton’s has much ability to continue. Now it’s privately owned by a family (which has bigger issues to worry about) I can’t see them wanting to keep it running to lose £20m a year (although I imagine they see some profit in the American greetings business - but they only own 40% of that now)
- China will need to have these "strategic" reserves so will have to buy them back at some point - Green revolution is still happening (I've an electric car being built as we speak!) - Inflation is an issue but big infrastructure still required and investors need to deploy the capital - Trading in oil looks like it will be a very big boom in the next 2/ 3 years are the supply & demand set is all wrong (Trafigura results were a blow out)
RE: My thoughts on the CARD Factory.17 Jun 2021 16:03
I agree and I am always amazed as you say as to how busy the stores are
I would like to see some improvements though
- content of the cards (moonpig is funnier and more relevant) but this is an easy win we can hire designers - online party/ balloon offering there are a few specialists set up during lockdown which are selling loads of party and balloon gear. Their ranges are far bigger. We should be blowing these guys out of the water. Also i think balloons is a great way to win back market share with younger customers. Again an easy win
I also think with rent reductions and price increases the EBITDA will be strong
Pawn/ loans have reduced as furlough has supported households. Furlough is ending and this will mean people have to return to the pawn shop. The same here for precious metal sales. Also gold price is rising so the increasing price will drive sellers
The underlying EBITDA number is impressive and shows the cash generation of this business. A side from that the rest of it is all as we knew ie opening up and getting on with things. Also the net debt reduction is actually deferred vat and property costs (the £40m stated in the last RNS) so there isn’t a net debt reduction really.
Would have liked some news of new partnerships
All early days but shows the business is intact. Re sales I think awful May weather was why they calmed. Let’s not forget how awful that month was.
The marketplace will be "ready to go" they have had to set the infrastructure for this but the point is when it is (don't forget they have only owned the site a few months) they brands can pop on instantly. The likelihood is that you've legal agreements and commercial decisions such as the rate of commission and share of certain costs to agree before you can add someone. Yumi haven't just gone on there as they decided this morning there will have been a fair few weeks of getting the commercials right. Now that's done the whole yumi range is there instantly. yumi decide to sell 3 seater sofas tomorrow? It will go on instantly. The part slowing down the marketplace is the commercials and getting the right balance. But adding scale of any brand is instant. New comms sorted with another brand then boom all products on. No lead time of having to wait for the whole range of stock to land in a boohoo warehouse. And no write down risk if it doesn't sell
The part i'm correcting you on is your "and not on marketplace" as it's clear you thought (similar to platform) that marketplace means website and you were expecting like asos a separate website. Its a marketplace but that is a type of operating model. It means no stock.
Also on Zalando - you demonstrated again why you don't understand as you sent the link to their wholesale bit (ie buying Adidas etc). https://corporate.zalando.com/en/brand-hub/partnership-models - middle box fella you'll see the "marketplace model" and you'll see that the supplier/ brand does all the shipping and inventory risk. You can't even get your own points right
Yeah there are a few wholesale brands in but these will be to give the menswear range some credibility. There is only really Burtons atm. But you'll see marketplace be the bulk of this moving forwards
You should be happy rag - sucessfull marketplaces have HUGE multiples and you know what they are now! Well sort of
@rag the “marketplace” isn’t like asos marketplace on a seperate website.
It’s a way of operating additional revenue streams through a new business model. Part of the art of what boohoo is doing to making it so the customer doesn’t know one or the other. Previously 25% of Debs online was a marketplace and no one had a clue
I know you think this is “just words” but the whole point is that that Yumi dress goes direct to the customer from Yumi. Boohoo did nothing but get to collect their 15%
There won’t be a big fanfare and a seperate “marketplace” the “marketplace” is an operating concept where brands go direct via your website. It means boohoo don’t have to write a cheque for £150m buying a tonne of stock
It’s like Amazon/ zalando and not on the high street. They don’t own or touch the item but get commission. On zalando I don’t know if I’m getting a marketplace good or a wholesale good it’s seem less