Clinton Cards stepped up its expansion plans today after seeing sales bounce back from a bad performance at Christmas.
Like-for-like growth across the greeting cards group has improved to 5.5% in recent weeks from just 1.5% over the festive period.
Managing director Clinton Lewin said the business was back on track and that there was a “tremendous amount of growth potential”.
Clinton Cards hopes to have 800 stores in place by 2006, up from the current 672, and could hit 1,000 by the end of 2010.
The retailer has been focusing on modernising and extending its existing sites in an attempt to increase total trading space.
Two shops in Bath were combined into a 10,500 sq ft (975 sq m) store in November to form the group’s largest outlet to date.
The strategy helped total sales in the year to 27 January rise almost 8% to £339.4m as pretax profits jumped 10.7% to £19.7m.
Lewin said all product areas were performing well after poor sales of mugs and toys hit Christmas trading.
“It’s just management of the business. Things do duck and dive in retail but we have a strong range and a strong brand,” he said.
Around 30 new stores are due to open this year, including Clinton Cards’ first store outside the UK – in the Republic of Ireland.
The group will also look to build on its relationship with Debenhams, which stocks Clinton Cards’ products in 40 of its stores.
Shares were up nearly 4% in early trading, a rise of 6.5p to 176.5p, which would be the highest close for over two years.
Shareholders will receive a total dividend of 6.74p, up 14.6% on last time.
EGi News 16/04/02
