The company that knows how to play its cards right

The ​Wakefield-based company said like-for-like store sales rose 2.7 per cent in the six months to July 31 and it is on track to open 50 new stores this year.

Card Factory started in 1997 with just one store and it now has a nationwide presence and recently opened its 800th store. The plan is to have a chain of 1,200 stores.

The group’s stores are in a wide range of locations including high streets in small towns through to major cities, shopping centre developments, out-of-town retail parks and factory outlet centres.

The company was valued at £766​m when it floated on the London Stock Exchange last May and has since seen its market capitalisation increase by more than £480​m​, ​giving it a value of £1.25​bn and making it one of Yorkshire’s 10 biggest listed companies.

The firm has a sound proposition – selling cards that people like without ripping them off.

Consumers are getting tired of paying preposterous prices in chains like WH Smith and other high street retailers which think nothing of charging £3 or more for a piece of card.

In stark contrast, most of Card Factory’s cards sell for under £1 with some priced at less than 50p.

It benefits from in-house design, printing and warehousing, which significantly reduces external costs and keeps the price down.

It designs and manufactures many of its cards here in Yorkshire and it can also use third party providers to keep up with demand.

​The company is also seeing strong sales of new non-card ranges, such as candles, cushions, picture frames and ornaments as people trust the brand.

Just as the discount stores Aldi and Lidl have opened peoples’ eyes as to how you can get decent quality for low prices, Card Factory is launching a similar revolution. Its store expansion plans coupled with a revamp of its website means it can attract all demographics. It doesn’t matter how wealthy you are, no-one likes to pay over the odds for what is essentially a very cheap item to produce.

Decent Christmas cards retail at £1 for a pack of 10, because people can’t afford £1 per card. The retailers are still making a profit on 10p cards which shows you that the £3 price tag at WH Smith is merely feathering the nest of shareholders, not looking after the interests of customers.

Given time, it could become just as fashionable for the chattering middle classes to buy their greetings cards from Card Factory as it is to buy their lobster, caviar and champagne from Lidl.

Yorkshire saw a host of successful AIM floats last year and a number have gone on to reward shareholders with bumper returns. A few stand out – namely Card Factory, womenswear retailer Bonmarche, manufacturer Polypipe Group and software specialist Servelec.

However few can match the storming performance seen at Leeds-based Clipper Logistics, the firm that distributes goods for blue chip retailers such as Asda, Morrisons, John Lewis and ASOS.

Clipper has seen its​ ​share price rise from 100p when it listed in June last year to ​278p, giving a market capitalisation of £278m and making its shareholders very happy.

​In a world where one bad retail experience can be broadcast all over Twitter and Facebook, it is imperative that retailers give customers a good service, and just as importantly, get it right when customers need to return goods. Retailers have enough to worry about in this difficult climate without trying to get their heads around logistics. This is where it makes complete sense to farm the problem out to Clipper.

Investors who didn’t pile in at the float still have a good chance of making a tidy sum, especially after the shares fell back this week.