Abacus Cards, Out Of The Blue, Woodmansterne, and Dean Morris reveal their thoughts
PG Buzz asks members of the greeting card community to what extent they believe the cost-of-living crisis will impact on the sector.
Will it be better placed than other product areas due to its relative low cost and personal, caring nature, and what should the Government do to help?
Here publishers Out Of The Blue Studios, Woodmansterne, Abacus Cards, and Dean Morris Cards give their thoughts along with revelations into some personal pick-me-ups.
Nick Carey, managing director of Abacus Cards
“I believe the current cost-of-living crisis we’re seeing will affect all industries, some more than others. The greeting card sector will see lower footfall on the High Street and people cut back on the enjoyable shopping to focus on the essential items they need. Following the Covid19 crisis this seems very unfair on our lovely independent High Streets. I expect we’ll see a slowdown in sales as customers make the choice between card and gift, one of these or none of these! I think our industry is well placed due to the sentiment and long-lasting love that can be shown to others within a greeting card.”
Do you foresee consumer price sensitivity on cards: “That’s a tricky question. At the one end I think we’ll see consumers searching for value to find that card and gift, and at the other customers will be searching and spending more on that extra-special card. Thus, it may be the middle ground within our sector that’s affected the most.”
What mitigating measures have you taken in your business: “In March 2022 Abacus took the decision to make a one-off payment to its employees, each receiving £700, the much-publicised value that the experts think the utility bills are going to rise by. We also were able to push through an annual salary increase too – as Tesco says, ‘every little helps’.”
Government magic wand wish: “Try to sort out a fairer tax system in these very trying times. It seems very unfair that while many individuals and independents are really struggling, we’re also reading reports of record corporate profits. I think this breeds huge frustration in the general public.”
Your personal pick-me-up: “Going to the cinema is a great pick-me-up for me.”
Pete Rawlingson, co-owner of Out Of The Blue Studios/Into The Green Publishing
“I believe greeting cards are much better placed than other product categories in this cost-of-living crisis, with emotion at their heart and at a low unit cost.”
Do you foresee consumer price sensitivity on cards: “There will certainly be some increased price sensitivity which bodes well for the wholesale sector of which Out Of The Blue Studios is a part, but also consumers will be placing greater emphasis on things that matter, such as sustainability, which is at the heart of our Into The Green mission.”
What mitigating measures have you taken in your business: “We’re constantly looking at keeping our costs to a minimum, to mitigate the overall price of our products. From sourcing, transport, warehousing and continually looking at better ways of working to find improved efficiencies.”
Government magic wand wish: “Free parking on all High Streets to bring the life back to retailers along with addressing directly the cost-of-living crisis on fuel bills.”
Your personal pick-me-up: “While I’m happy with a nice bottle of red, my co-owner Clive Rubin likes a good holiday as he sees himself as the new Judith Chalmers!”
Seth Woodmansterne, managing director of Woodmansterne Publications
“I take heart from the fact that greeting cards have always fared well in tough times, as people prioritise sending messages of love over spending money on gifts – yet again proved recently during Covid. However, the perfect storm of pandemic recovery, the Ukraine war, and rapidly-rising costs is very real, and almost without precedent. I fear it’s going to feel very challenging for us all.”
What mitigating measures have you taken in your business: “We must all do our bit to tighten our belts, and find ways to mitigate and adjust, whether at work or at home. Necessity is the mother of invention, after all! But no one can escape these rising costs entirely. They’re rising too quickly – at a rate not seen since the 1950s I believe – and too widely, across energy, wages, transport and materials. To make, move, and sell anything requires these things. Just as we accept food costs rise and we adjust our decisions accordingly, so must other goods. Pretending otherwise doesn’t help anyone, or the planet.”
Government magic wand wish: “The government has a large working majority in Parliament and many tools at its disposal – there’s an awful lot it could be doing to deliver change and support for people, if only they could find the will and focus! Doing something would be novel and welcome.”
What’s your personal pick-me-up: “Through lockdowns, having flowers at home became a real treat – even a bunch of £1 daffodils can lift the spirit through the week!”
Dean Morris, managing director of Dean Morris Cards
“It will undoubtably have an impact but, thankfully, greeting cards are not expensive televisions or holidays. I think retailers have always done this and certainly some cards really lend themselves to being a gift as well.”
What mitigating measures have you taken in your business: “Like many others I had to have an increase in my trade price of cards this year, but I’ve avoided any increase on the website. I try to always stay as competitive as possible.”
Government magic wand wish: “They should move out of No 10 and give someone more caring and competent a go.”
What’s your personal pick-me-up: “I love being able to plan a holiday again – mostly without drama – and that’s always a pick-me-up. A nice fancy meal out always lifts the spirits and, if I’m feeling more frugal, just a nice hot soak in the bath always does the job.”
These comments appear as part of the Viewpoints section in the June 2022 edition of Progressive Greetings magazine.
Top: The cost-of-living v the importance of loving
