NEWS
Tesco boss
GT named as official preview magazine
calls for
for Spring Fair
Greetings Today has teamed up with exhibition organisers EMAP Connect to become the official preview
rates review
magazine to Spring Fair International 2009.
“It’s great recognition of Greetings Today’s status as the most widely read magazine in the industry,”
Sir Terry Leahy, chief executive said publisher, Mark Naish.
of Tesco, has thrown his support Readers of GT and visitors to SFI will be able to enjoy unprecedented pre-show information from
behind a call for a review of the February issue of the magazine, including comprehensive coverage of the key exhibitors and new
business rates. product launches.
Missing from Alistair Darling’s “It’s a must-read issue,” adds Naish. “This is the most important exhibition of the year and the
Pre Budget Report (PBR) was any reaction to the biggest too. We are proud to be able to offer our readers and advertisers the best possible editorial
campaign for a review of business rates being waged by platform. We will be pulling out all the stops to connect publishers and buyers and help them get the
retail organisations and high profile operators like Tesco. most out of this key show. “
Tackling business rates is seen as key if stores, Spring Fair International takes place at Birmingham NEC, February 1-5 2009 and features over 300
including card retailers, are to survive the impending top publishers and suppliers in the greetings card industry.
recession.
Leahy has made three suggestions:
First, a cut in the Uniform Business Rate multiplier for
2009/10 so businesses would not see their business rates
Sales slowdown at
increasing during a recession.
Second, the Government should postpone the 2010
revaluation of business property, which would otherwise
Clinton Cards
be based on April 2008 property values.
Clinton Cards reported a sharp fall in sales in November,
Third, in the long term, business rates themselves
blaming the “harsh economic conditions” on the High Street.
should be reviewed because they do not reflect the
The retailer said group like-for-like sales - which strips out
changing nature of businesses today with the value of
the impact of store openings and closures - fell 6% in the 16
property no longer providing a reasonable indicator of
weeks to 16 November.
profitability.
Sales were down 7.1% at its Clinton branded stores, and 2.5% lower at the company’s Birthdays
“ The way businesses are assessed should be
outlets.
reformed to ensure a fairer spread of tax liability across
Clinton said trading remained “very challenging” ahead of the key Christmas trading period.
business sectors,” added Leahy. “Government should
City analysts claim that the group, particularly Birthdays is being hit hardest by competition from
make sure that it does not place extra regulatory burdens
supermarkets and that it is unlikely to grow its share of the greeting card market substantially.
on business.”
The firm has opened 12 new stores since August, but closed 21.
Leahy’s comments were echoed by the British Retail
It now has 1,042 outlets across the UK, comprising 697 Clinton stores and 345 Birthdays shops.
Consortium (BRC), which noted that retailers are on
the verge of being hit with substantial business rates
increases, and that their margins are in danger of being
squeezed too far by tough trading conditions.
Card Factory takes bite out of Celebrations
Commenting on this sticking point, BRC chief Wakefield-based Card Factory has reached a deal with administrators Zolfo Cooper Europe (formerly
executive Stephen Robertson said: “Because retailers Kroll) to buy 76 stores from the failed Celebrations Group.
use a lot of property, business rates have a profound Celebrations Group, which owns the Card Warehouse and Card Fair brands, went into administration
impact on retailers’ viability. The Chancellor should have last month causing the potential loss of 1700 jobs nationwide. Card Factory has stepped in to take over
reduced next April’s excessive business rates increase almost 80 of the Group’s 280 stores.
and postponed the 2010 revaluation. These substantial Richard Hayes, Managing Director of Card Factory said: “The Celebrations stores purchased provide
new burdens can only increase the pressure on fragile a good fit with our existing footprint and enhance our national presence. To achieve this and at the same
businesses and push up prices. Retailers are crucial to time save over 500 jobs is very pleasing for us!
jobs, customers and communities; Government should be “In uncertain economic times the general public demands ever increasing quality but also wants to
helping, not hindering. This is a serious oversight.” see better value for money. Card Factory has always worked on both principles and that has led to the
company becoming the fastest growing card retailer in the UK today.”
* See Page 14 for full update
*Next April’s Business Rates increase is to be
based on this September’s five per cent RPI.
No RPI has been higher since July 1991.
*A year later retailers will face a massive 16
Stewo wrap business folded
per cent cumulative increase in Business
Swiss wrap manufacturer, Stewo went into liquidation last month.
Rates as a result of the 2010 Revaluation.
The roll wrap printer had been trading for 148 years and had supplied the top end of the market
* Despite pressure from top retailers, the
in both Europe and the USA.
Chancellor made no commitment on these
Known in the UK for own label production, many UK designers have supplied images for a wide
crucial business costs.
range of products. Part of this family-owned company was being sold but the banks intervened
withdrawing all credit for both Stewo and their buyer.
6 Greetings Today
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