Group’s demise is ‘opportunity for indie retailers’ highlights Paper Tiger owner
Paperchase will cease online trading at midnight tomorrow, Friday, 17 February, although the retailer is encouraging in-store shopping as it holds closing down sales – claiming new stock will be arriving weekly with up to 50% discounts.
But the demise of the former greetings and stationery staple of the British High Street could be a great opportunity for independent retailers to grab their slice of its £100million-plus market share while the soon-to-be-available stores are in prime locations as retail data specialist Springboard shows footfall is continuing to return to UK retail destinations.
In an email to customers yesterday, Paperchase announced: “It is with a heavy heart that we inform you that the Paperchase.com online store will cease trading on Friday, 17 February, 2023 at midnight. In the meantime, you can still shop online and get at least 30% off almost everything while stocks last.
“We want to take a moment to thank you for your support and loyalty over the years. Whether you were browsing for the latest notebook or seeking inspiration for your latest project, we are so grateful to have been a part of your journey.
“You will still be able to shop in our stores for a little longer. We’ll have new stock arriving weekly in stores with up to 50% off. Hurry, when it’s gone, it’s gone. Thank you for being a part of our special journey. With love, the Paperchase team.”
The greetings world now awaits the fallout from the company’s collapse, which has seen Tesco step in to take the IP and brand within its offer and boost its non-food proposition, while the website and all 106 standalone stores and concessions will close with the loss of around 1,000 jobs
PG Buzz understands there will be a scramble for the stores with the five Network Rail outlets – in Victoria Station, London Bridge, Waterloo, Kings Cross and Birmingham New Street – known to be up for tender with some of the greetings retail players already having made their interest clear.
Pointing out that, prior to the pandemic and the private equity and venture capital owners getting their hands on Paperchase, the business that started in 1968 turned over around £125million annually, indie retailer Michael Apter also admitted: “Losing your main competitor is, it turns out, quite a strange place to be, and the demise of Paperchase has left me in a reflective mood.”
In his latest blog – available to read online with the opportunity to subscribe to his newsletters too –Michael spoke of the many committed people who “care deeply about the company – and the industry in which they work”, a few of whom he has employed in his own two Paper Tiger stores in Edinburgh, and he added: “It is clear – yet again – that the main losers are those employees. We must not forget the unpaid suppliers, some of whom have been left significantly out of pocket, and the landlords with soon to be empty shops and unpaid rents.”
Acknowledging the issues facing High Street retailers and “sector issues with greetings cards and stationery due to the changes in how we communicate, technological changes, social media, etc” were factors in Paperchase’s decline, Michael said: “The material uncertainty emanating from Ryman suggests that there is more pain to come. Nevertheless, there is still a huge demand for this product category (just ask Tesco).”
He believes Paperchase will leave a “creativity gap” on the High Street, while suspecting businesses like Scribbler, The Works, Hobbycraft and CassArt are busy sizing up some of those empty sites.
And Michael added: “In the meantime, there is an opportunity for independent retailers to take a slice of, perhaps, a £100m chunk of the market previously taken in the Paperchase tills. That is a lot of cards and stationery, a great opportunity to grow businesses within current footprints, and a chance to recruit some experienced retail staff who are passionate about paper products.”
