Card Factory has expanded its partnership with Aldi, becoming its exclusive card supplier.
- This collaboration marks an increase in Card Factory’s reach to Aldi’s 1,200 UK stores and, for the first time, in Ireland.
- Initially partnering in 2019, Card Factory shared the supplier role with IG Design Group.
- The expansion follows a successful trial with Matalan stores, despite a recent drop in Card Factory’s profits.
- The new agreement is a strategic move to strengthen Card Factory’s presence amidst financial challenges.
Card Factory, a renowned gifting specialist, has solidified its partnership with Aldi by becoming the exclusive supplier of greeting cards to the supermarket’s UK and Irish stores. This exclusive deal marks a significant expansion from Card Factory’s previous arrangement, where it supplied cards to 550 Aldi stores in the past.
The initial partnership between Card Factory and Aldi commenced in 2019. At that time, Card Factory was sharing the supplier responsibilities with IG Design Group, and their products were distributed in half of Aldi’s UK outlets.
This new collaboration allows Card Factory to tap into Aldi’s extensive network of 1,200 stores in the UK, and for the first time, reach the Irish market. Such a move aligns with Card Factory’s growth strategy, which focuses on enhancing its physical retail presence.
Prior to this expansion, Card Factory executed a successful trial of its card ranges in Matalan. Following this, the brand established concessions inside all 223 Matalan branches, highlighting the demand and success of its products.
Despite the promising expansion, Card Factory is encountering financial difficulties. The company reported a significant 43% decrease in pre-tax profits, amounting to £14 million for the six months leading to 31 July, even though it experienced a 6% rise in sales during the same period.
This strategic partnership with Aldi is expected to bolster Card Factory’s market position and potentially mitigate some of the recent financial setbacks. The retailer aims to leverage this expanded distribution to stabilise and grow its business further.
The strategic partnership with Aldi serves as a pivotal component of Card Factory’s efforts to enhance its market presence amidst financial challenges.
