The outlook for the UK high street remains uncertain according to Card Factory, following a lacklustre Christmas trading period marked by declining footfall. The prominent greetings card and gift retailer has reported that total store sales dipped by 0.8% across November and December, with like-for-like store revenue falling by 1.2%.
Group Performance and Profit Guidance
Despite the challenges faced on the high street, Card Factory's total group revenue saw an increase of 4.3% compared to the same period the previous year. Over the eleven months leading to the end of December, total group revenue rose by 7.3% year-on-year, exceeding £541 million.
This growth is attributed to contributions from the company's acquired businesses in the United States and the Republic of Ireland, including the integration of Funky Pigeon, which was purchased in a £25 million deal last year. The retailer confirmed it remains on track to meet its revised pre-tax profit expectations, which are forecast to be between £55 million and £60 million.
Executive Commentary on Trading Conditions
Darcy Willson-Rymer, Chief Executive Officer of Card Factory, commented on the trading environment. "We are on track to deliver profits in line with our revised guidance announced on December 12 2025," he stated. "During the second half of the year and particularly the important Christmas period, trading in our UK stores reflected the challenging consumer backdrop which contributed to soft high street footfall."
Willson-Rymer added, "Across the group, we are encouraged by the performance of our international businesses and that the integration of Funky Pigeon remains on track. While the outlook for the UK high street remains uncertain, we continue to focus on our value-led proposition to help our customers celebrate all life's moments."
Strategic Initiatives and Cost Management
Card Factory has been actively driving efficiencies and managing costs through its 'Simplify and Scale' programme. The board expressed confidence in the group's prospects and the continued momentum of its growth strategy. Throughout the eleven-month period, the company expanded its partnerships business and accelerated its digital strategy with the acquisition of Funky Pigeon.
The 'Simplify and Scale' programme has largely combated persistent cost inflation, according to the retailer. This strategic focus is part of Card Factory's efforts to navigate the uncertain retail landscape while maintaining profitability.
Broader Retail Footfall Trends
The disappointing Christmas trading experienced by Card Factory reflects a wider trend across the UK retail sector. Research indicates that rising bills and food costs have deterred consumers from shopping, leading to a significant decline in footfall.
According to data from the British Retail Consortium and Sensormatic, total UK footfall decreased by 2.9% during December compared to the previous year. Visits to the high street were down by 0.9%, while retail park footfall fell by 2.5%. Shopping centres were particularly affected, suffering a 5.1% drop in Christmas customers compared to the year before.
Overall, total UK footfall for the year was down 0.8% compared to 2024, and the 'Golden Quarter' visitors over the three months to December fell by 2.2%.
Industry Analysis and Future Outlook
Helen Dickinson, Chief Executive of the British Retail Consortium, provided analysis on the situation. "It was a disappointing December for retailers as footfall declined across all shopping locations, as well as in the major cities," she said. "In the face of rising bills and food costs, many consumers held off for post-Christmas sales, with the week after Christmas the only one to see a significant uplift."
Dickinson further explained, "Shoppers were also browsing less in the lead up to Christmas, making fewer, but more targeted shopping trips, particularly in shopping centres, which saw the largest drop in footfall. Last month's figures capped a challenging year, with total shopper traffic down in 2025. This marks the third consecutive year of annual footfall decline, reflecting the continuing evolution in shopping habits and the retail landscape."
As Card Factory and other retailers navigate these challenging conditions, the focus remains on strategic adaptations and cost management to sustain performance in an evolving market.
