Card Factory is set to supply Aldi exclusively with greeting cards across the UK and Ireland, marking a strategic expansion in their partnership.
- Initially starting their collaboration in 2019, Card Factory has been providing cards to about half of Aldi’s UK stores.
- The new exclusive agreement will see Card Factory expand its reach to all 1,200 Aldi stores in the UK, and for the first time, enter the Irish market.
- This move aligns with both companies’ growth strategies, particularly at a time when Card Factory is looking to improve its pre-tax profit margins.
- Despite a recent 6% increase in sales, Card Factory’s profits have decreased, underscoring the significance of this expanded partnership.
Card Factory has announced an enhanced partnership with Aldi, solidifying its role as the exclusive provider of greeting cards to the German supermarket chain’s extensive UK and Irish store network. The collaboration, which originated in 2019, initially involved servicing half of Aldi’s 1,200 UK outlets. This expansion will now extend Card Factory’s supply to the entirety of Aldi’s UK stores, while also inaugurating its entry into Aldi’s Irish market.
The expansion is reflective of Aldi’s own growth ambitions within the UK, facilitating an increased physical presence and offering an extensive range of products to consumers. For Card Factory, this new agreement offers a vital commercial opportunity, underpinning its strategy to broaden market reach and solidify its position as a key player in the retail card sector.
Card Factory’s previous arrangement involved sharing the supplier contract with IG Design Group. With the latest development, Card Factory secures an exclusive position, allowing for greater market penetration and an expected uplift in sales performance. The timing is strategic; Card Factory is currently looking to reverse a 43% downturn in pre-tax profits, reduced to £14 million for the half year ending 31 July, albeit against a backdrop of 6% sales growth.
This renewed focus on exclusive supply partnerships is timely, given the firm’s need to bolster financial performance. The strategic placement of Card Factory’s greeting cards across Aldi’s stores not only provides an immediate boost to sales potential but also supports its broader objective of enhancing brand visibility and market positioning.
The move follows Card Factory’s recent concession venture with Matalan, where selected ranges succeeded across 223 branches, further validating the company’s growth-centric retail approach.
The enhanced collaboration between Card Factory and Aldi aligns strategically with both entities’ growth plans, offering mutual benefits in market expansion and financial performance.
