What's Happening?
WHSmith has completed the sale of its online personalized greetings card business, Funky Pigeon, to Card Factory for £24 million. This transaction marks WHSmith's strategic shift towards becoming a global travel retailer, following the sale of its high street stores to Modella Capital. Funky Pigeon, known for its personalized cards and gifting services, has generated approximately £32 million in annual revenue and £5 million EBITDA over the past two years. Card Factory's acquisition aims to enhance its digital presence in the celebrations market, leveraging Funky Pigeon's technology platform and expertise. Card Factory's CEO, Darcy Willson-Rymer, expressed enthusiasm for integrating Funky Pigeon into their operations to accelerate growth in the direct-to-recipient card and gifting segment.
Why It's Important?
The sale of Funky Pigeon is a significant move for WHSmith as it refocuses its business strategy on travel retail, potentially increasing its market share in this sector. For Card Factory, acquiring Funky Pigeon represents an opportunity to expand its digital capabilities and strengthen its position in the celebrations market. This acquisition could lead to increased competition in the personalized card and gifting industry, driving innovation and potentially benefiting consumers with more diverse offerings. The transaction also reflects broader trends in retail, where companies are increasingly prioritizing digital transformation to meet changing consumer preferences.
What's Next?
Card Factory is likely to integrate Funky Pigeon's technology and digital expertise to enhance its product offerings and customer experience. This could involve expanding its online presence and developing new digital marketing strategies. WHSmith may continue to divest non-core assets as it focuses on travel retail, potentially exploring new partnerships or acquisitions to strengthen its position. The retail industry may see further consolidation as companies seek to optimize their operations and adapt to evolving market conditions.
