We intend to leverage a number of key market trends and opportunities in our target addressable markets.

Clear transition from offline to online

The cards market is increasingly moving away from traditional stores, with online penetration for card purchases showing strong growth in comparison with other product categories. The impact of the Covid-19 pandemic in the UK and the Netherlands has further accelerated the transition to online, with the online segment of the cards market growing nearly 125% year-on-year during mid-March to August 2020 in the UK.

This trend is underpinned by the strengths of the online proposition and experience when compared to offline, including broader choice, ability to personalise products, enhanced convenience, additional digitally-enabled features such as reminders, and a tailored customer experience.

There are estimated to be 53.8 million card purchasers in our core markets, representing a large, untapped pool of potential customers for us to win. Online sales of cards currently account for only around 10% of the total market spend in the UK and 13% in the Netherlands, further demonstrating the clear potential for significant further growth.

Growth in card-attached gifting

Approximately 72% of cards are currently given with a gift in the UK. As the clear leader in the online cards market, we’re well placed to take advantage as card-attached gifting grows online. This gifting spend is fragmented across a broad set of categories including flowers, food, drink and toys. In both the UK and the Netherlands, our strong offering in these key product ranges mean there is considerable scope for further online penetration of this market.

All market figures provided by OC&C, estimates compiled for 2019 - download the market report here.