2016-09-12T07:14:00Z By Grace Bowden
2016-07-28T14:41:00Z By Emily Hardy
2016-06-20T09:15:00Z By John Ryan
Paperchase is launching concessions in Canada as it seeks to emulate the heyday in North America it experienced under former owner Borders.
The greetings card and stationery specialist launched two concessions in Canadian department store Hudson Bay earlier this month and hopes to launch up to six by the end of the year.
Finance director Kevin Heath said the Canadian expansion was part of the retailer’s “route back into the North American market”.
Before the collapse of Borders there were 330 Paperchase concessions in Borders’ North American stores, which were raking in $50m (£31.9m)of revenue a year.
Heath said previous sales of $50m proves there is a “market and appetite for our product” in North America.
The launch of the Canadian stores follow Paperchase signing wholesale agreements in the US, which have resulted in Paperchase product being sold in Target and Staples stores.
Heath said Paperchase was actively considering launching concessions in the US and added it could launch standalone US stores “if the right opportunity presents itself”.
The US wholesale agreements and a jump in sales in the UK have resulted in a surge in profits at Paperchase.
Pre-tax profit increased 383% to £3.6m during the year ending 31 January 2015. EBITDA excluding exceptional items, the metric Paperchase measures itself by, increased 31% to £9.6m during the same period.
Profits came on the back of a 3.1% like-for-like increase and a 7% jump in sales to £102.6m.
Heath added £400,000 of the retailer’s growth came from its US wholesale agreements with Target and Staples.