suppliers are too one-sided but the product range market with a big clout whilst picking up some good
needs constant refreshment if it is to compete on the margins on their over-priced cards.”
high street. Clinton has played a

smart game since the
What the City says
Suppliers
There will be many card publishers who aren’t
start of 2009. It took
The City responded positively to the Birthdays move
and the share price leapt six-fold since the start of the
going to look at Clinton the same way ever again. strong, effective action
year, albeit from a very low base.
For those caught up in the Birthdays collapse there
on Birthdays and has
However, analysts are not totally convinced
will be a lot of bad feeling out there. The smaller
outfi ts will have to take it on the chin while the
emerged stronger for it.
that Clinton’s recovery is sustainable in the long-
term with one stating: “If Clinton is to achieve a
larger concerns like UK Greetings and Hallmark
sustainable recovery, it is not going to be through
will be busy re-evaluating and renegotiating its
card sales, since competition from supermarkets
relationship with Clinton.
are targeting the major seasons and occasions
(who continue to gain share) is likely to erode
Clinton is a big account and nobody wants to
for volume sales. This is bad news for Clinton
Clinton’s share.”
lose that level of business in this marketplace,
Cards in its mid-market position as it will not
particularly as the big publishers will be making
want to compete against the supermarket’s value
The Stores
higher margin on sales to Clinton than they will
proposition. Traditionally. Clinton has always
Clinton still believes that its twin format of Birthdays
to the supermarkets. Plus, with the big publishers
traded off upselling consumers on gifts once
and Clinton Cards is the right way forward.
brokering cards into the multiple grocers they will
they are in the store but with a lower footfall at
Moreover, it believes that the optimal size of the
be able to compare the metrics to see where the
these key trading points this opportunity could be
estate should be around 1000 stores.
cash is coming from and will know how to fl ex that
eroded.
In the current climate and with limited resources
advantage.
at its disposal a revamp of the stores is highly
The independent view
unlikely and there’s no guarantee a multi-million
Card Factory
Many independent retailers are realising that they
refurbishment programme would work anyway.
The emergence of Card Factory has moved the
need to move upmarket and offer consumers a very
As John Ryan reports over the page, many
value end of the greetings market even lower
defi nite ‘shopping experience’ to compete against
Clinton stores are looking tired and outdated against
with dramatic effect. There’s no doubt that Dean
the likes of Clinton. This shopping experience
their more modern competitors.
Hoyle’s concept is hitting the mark with a constant
is made up of several key ingredients, namely
The trick for Clinton’s management team
programme of store openings and a cut-throat
ambience/environment, service levels, accessibility
will be to inject some energy back into the retail
attitude to pricing.
and product. Here’s what they have to say.
environment at minimal cost. A major factor in this
And although Card Factory has few fans in
will switching on the store staff and getting them to
the industry, there’s no doubt its concept works
“Clinton scores very low on environment and
buy into the vision.
– there’s a bit of pace about it and although the
service levels, which limits its ability to sell higher
interiors are ‘in yer face’ they are bright, well-
price point and quality branded wares. They would
Conclusion
appointed and easy to shop.
effectively ‘cheapen’ anything of value.”
Clinton Cards is not dead and buried by any means
You don’t always get the same sense of energy
but there is cause for concern.
with Clinton or Birthdays, which look tired and
“Clinton stores only sell what Clinton stores can,
AS GT has said before, Clinton is an important
dated in contrast.
which is trivial keepsakes, soft toys and the like -
part of the UK greetings industry and as an
essentially a couple of rungs up from fairground
independent retailer, a strong Clinton is a good
prizes. They have attempted to maintain an air
thing.
of quality in a world that has moved forward
But without strong signs of action and clear
considerably and left them looking over-priced and
strategy going forward there are genuine fears that
a little tacky.”
the short term blip of the Birthdays deal may not be
enough to see it through.
“Clinton Cards’ massive success in creating a brand
will probably be its demise now that the brand is
starting to fade and the monster that is Clintons is
probably too unwieldy to bring into line with the
current sophistication of the retail world.
Clintons in its current guise is not salvageable
because its main strength has been its ability to gain
market share and that this slip over the coming years.
If it were my company I would let Birthdays
take on the existing Clintons mantle and seek to
sell the fairground goods on the High Street with a
target audience of low to middle spenders. This will
obviously dent the deep discounters such as Card
Factory.
Seasonal Blues
Clintons should be re-branded as Dintons-Smythe
The big question for Clinton and the industry as a
or some other snobby name whereupon the middle
whole is: “Where is Christmas going to end up this
and upper levels can be catered for. This is where the
year?”
big money is with a classier ambience and the ability
The answer is probably in the hands of major
to sell products above the £10 mark - They could then
grocers like Tesco, Asda, Sainsbury’s et al, which
hit the chocolate, jewellery, book, stationery and gift
www.greetingstoday.co.uk 17
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