Card Factory acquires Funky Pigeon from WHSmith

Card Factory will pay £24m for Funky Pigeon, saying that the deal would help realise its ambition “to become the leading omnichannel retailer in our sector.”

For WHSmith, the disposal is another step forward as it focuses on travel retail, having recently sold its high street division.

Card Factory said that the deal acclerates its existing digital strategy, “providing access to a large, established customer base and a high-quality technology platform for online growth.”

The purchase will make Card Factory “the second largest online card and attached gift retailer in the UK market, providing a great value offer to consumers across personalised cards, attached gifting and celebration essentials.”

Card Factory chief executive Darcy Willson-Rymer said: “Together, the enlarged customer base will benefit from a richer, more convenient customer proposition, combining the strength of our nationwide store estate and wider celebrations offer with Funky Pigeon’s exceptional digital experience. 

“Operational efficiencies, fulfilment synergies, and a unified technology platform will provide the data needed to develop deeper insights into the customer journey, enabling us to build a stronger, more integrated omnichannel business.”

Card Factory also said that group sales for the five months to June 30 “increased by mid-single digits year-on-year” and that full-year profit expectations remain unchanged.