What's Happening?
WHSmith has finalized 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 focusing on its global travel retail operations, following the sale of its high street stores to Modella Capital. Funky Pigeon, known for its personalized cards and gifting services, has been a profitable venture, generating significant revenue and EBITDA over recent years. Card Factory aims to leverage Funky Pigeon's digital platform to enhance its presence in the celebration occasions market.
Why It's Important?
The sale is a strategic move for WHSmith, allowing it to concentrate on its travel retail business, which is seen as a growth area. For Card Factory, acquiring Funky Pigeon represents an opportunity to expand its digital footprint and compete more effectively in the online celebrations market. This acquisition could lead to increased competition in the personalized gifting sector, potentially benefiting consumers with more options and innovations. The deal reflects broader trends in retail where companies are increasingly focusing on digital and niche markets.
