The trade woke up to the news today that Clinton Cards has finally taken the “difficult decision” to offload the troubled Birthday’s chain of 332 shops. The news, though upsetting, will not come as a huge surprise to greetings industry insiders, who have seen Clintons struggle to push Birthdays out of the red since purchasing the chain in 2004. Sluggish sales of occasions cards throughout the industry (according to one major publisher) and formidable competition in the form of Card Factory are likely to have contributed to Birthdays’ demise. It may even be the case that Clinton’s staunch supporters and suppliers will be breathing a discreet sigh of relief that the ‘boil has been lanced’ so that Clinton can now concentrate on the strong core business.
One long-standing member of the card industry (who did not wish to be identified) was quite pointed about the plight of Birthdays, commenting: “One could say that Birthdays has been left to go even staler with its offer to the public since Clintons took it over. No firm style of product and loads of tatty fancy dress clothes. The stores have not been inviting footfall. Equivalent and better product is found at lower prices in the supermarkets. Birthdays target market is muddled but low end and now very price conscious. Maybe no market at all. In my opinion it’s a perfect time [for Clinton] to get shot once and for all after closures throughout the group.”
on May 21st, 2009 at 5:29 pm
Not suprised at all. Birthdays problems emanate from weak management by Clintons whose board contains far too many famiuly members and “mates” and simply does not have the skill set for a plc of this size. When Ron Wood ran Birthdays it made loads of money - why? Because he was an out and out entrepreneur*.
This comment has been edited by Shop
on May 22nd, 2009 at 9:22 am
The following comment was made by Nick Rose of Important Occasions in Coventry:
“The major balloon manufacturers such as qualatex have been providing decorator training courses for the independent stores giving the smaller store knowledge and larger ranges. The internet is king at the moment for retail. The winners have been the companies establishing themselves on the web providing balloon-in-a-box and party-wear ordering online. Birthdays never had an online shop and the clinton cards website falls short of it’s online card ordering competitors moonpig and hallmark.
While the Clintons high street shop offers a great display and store layout to select the correct birthday card, the company tried to emulate this concept with Birthdays. Unfortunately it takes more than a nice shop display to sell party products… people want a service. We have a field team who deliver and decorate events and parties on site, this includes balloon inflation for Weddings and corporate events. We also provide a service to run children’s craft parties where we decorate the room and run a craft and games party.
On the day birthdays entered administration their website was still advertising a vacancy for a supervisor in it’s Reading store at £5.94 p/h. With low paid jobs, strong competition from small businesses, no delivery or service options, a lack of presence on the web and mounting debts the writing really was on the wall for birthdays.
http://www.birthdaypartyheliumballoondelivery.co.uk(Important Occasions online)
http://www.smallimportantpeople.co.uk
(Kids Party Crafts online)
on May 22nd, 2009 at 9:55 am
When Ron Wood ran the company he was very “hands on* but when the chain was sold a lot of the professional people involved in the company left leaving a void within the buying team of leadership and expertise.
It is a shame that this long standing chain has gone.
Also Ron had a football product selection in most shops which relied on loyal football fans and was not as price led as the card trade.
In the early days they were more willing to experiment in new areas and new products and listened to their suppliers advise.
on May 22nd, 2009 at 4:42 pm
Jane Bond comments:
The downfall of this company proves that Card Factory is crippling the retail card business with low cost and low quality products.
on May 23rd, 2009 at 3:21 pm
[...] More here: Not happy Birthdays – Trading Talk [...]
on May 28th, 2009 at 9:52 am
Chris Dyson, joint managing director of Cardgains, who was asked to comment on Clinton’s decision to put Birthdays into administration says:
Think this was a bit of a surprise! It’s difficult to comment on really as a couple of our suppliers obviously traded with them and no doubt have taken a hit. That’s never good news for anybody.
With my independent retailer’s hat on, though, less competition can only be a good thing.
I am sure however the stores wont just close overnight, someone is no doubt “cherry picking as we speak”.
Who knows, it might be the light at the end of the tunnel the independents have been looking for. Lets hope so.
on Feb 4th, 2010 at 3:16 pm
Love your blog.
True, those card companies face more and more problems.
Even moonpig is struggling I heard.