In the Cards

Want to boost nonfoods sales for all occasions? 

Start by stocking a wide selection of greeting cards and associated stationery items, because according to industry observers, a well-merchandised greeting card department can dramatically boost both sales and profits by attracting new consumers—including the ever-popular Millennials—to the store. Greeting cards also spur ancillary sales in departments like floral and giftware, and draw in traffic that previously went to independent card and gift shops, observers say. As an added bonus, most manufacturers maintain the aisle for the retailer, freeing up store associates to work in other departments. 

“If supermarkets are not selling greeting cards it is really a mistake,” says Carlos LLansó, president of the Washington, D.C.-based Greeting Card Association, and CEO of Legacy Publishing, a 2,000-plus title specialty greeting card manufacturer based in Clinton, Mass. 

“Think about the margins in the grocery business compared to the margins you are going to get in a greeting card,” LLansó says. “For a supermarket, a greeting card is normally a guaranteed sale.”   

LLansó sees greeting cards as a planned purchase, rather than an impulse buy. “You hardly ever see cards in the checkout lane because it is not an impulse thing. So, cards keep the shopper in the store longer,” he says.   

In recent years, many mall and downtown independent card stores have been closing up shop, LLansó notes. “While the greeting card business continues to be strong, the way those greeting cards are getting to consumers has certainly changed in the past couple of decades. I think supermarkets are perfectly poised for the change to capitalize on it,” he says.

Hallmark, for example, has beefed up its relationships with its supermarket partners, such as the Raley’s chain, based in West Sacramento, Calif. 

“As shopping habits change, we work closely with supermarket partners to ensure we are providing consumers with easy access to the products they need to connect with others,” says James Melton, vice president and general manager of national accounts at Hallmark Cards, based in Kansas City, Mo. 

“Consumers are short on time, so they are looking for stores like Raley’s where they can buy all of their weekly essentials and also find greetings products to enhance their relationships and improve their lives. We are pleased an industry leader such as Raley’s is aligning with us to better meet consumer demand by expanding their greetings department.”

A main attraction of the independent card store is its breadth of selection, and the supermarket can mimic that, say observers.

“For those supermarkets that remain committed to greeting card space and locations in their stores, and provide their consumers with the appropriate selection, they have a great opportunity to capture the market share migrating from the specialty stores,” says Megan Baucco, associate public relations manager at Cleveland-based American Greetings. “Many of American Greetings’ supermarket chains have integrated our Papyrus brand, which was historically only found in the specialty channel, to take advantage of this great opportunity.”

One way to capture the traffic that previously went to the independents is to customize each supermarket location’s assortment. 

“American Greetings looks at each store individually and has a formalized, proprietary process for providing the optimal greeting card department,” says Baucco. She adds that each department should be customized to satisfy the greeting card consumers shopping that store.

“Supermarkets should look at their greeting card business and see whether it matches the demographic of their core buyer,” LLansó says. “In an upscale store where a shopper will spend $7 for a jar of peanut butter, maybe that buyer is also willing to spend more on a card. While the average card is about $3.50, there are embellished cards with bells and whistles that will retail for $5.99 and up. At the same time, depending on their clientele, they may also want to have a 99-cent line. Depending on the size of their department they can have it all.”

Control mode

In most cases, the decision on how best to merchandise the department is left up to the greeting card manufacturer managing the department for the retailer. “Most of our members go into what is called ‘control’ and they control the greeting card business in that store,” LLansó says. “The fixturing is free and the servicing is done just like the bread guys do in the baked goods aisle.” 

While most supermarkets go with either Hallmark or American Greetings, LLansó suggests they may wish to check out a smaller player to give them more exclusivity. “In our membership of 200-plus members right now, probably one-third of us could do supermarkets well,” he says. 

It is important to work closely with the manufacturer when creating the contract to service the store, LLansó says. “Normally a manufacturer will not allow another brand of cards to be sold. It depends on the contract that the store has signed,” he says. 

The card publisher will offer the retailer free fixtures, service and guaranteed sales and returns on unsold cards. “What they are asking for in return is exclusivity and a term on the contract, where they are your provider for a certain number of years,” LLansó says. “That precludes a competitor from coming in and telling the store they will give them all new fixtures, cards and buy all of the cards from publisher X.”

Still, retailers can often insist on wording their contract to allow cards from smaller companies to be sold in other areas of the store, such as the floral or giftware departments. Legacy Publishing, sells its cards in Wegmans, for example. “Wegmans is a huge American Greetings outlet, but they have their little outposts where they have other publishers,” LLansó says.

Designer Greetings is one such specialty publisher, offering more than 21,000 everyday and seasonal cards in a wide range of styles. The Edison, N.J.-based firm also offers a broad range of gift wrap, including gift bags, roll and flat wrap, tissue, ribbons, bows and gift cards.

Design Design offers a full line of birthday and all-occasion cards. The Grand Rapids, Mich.-based company sources its uncoated paper from Mohawk Paper, a supplier renowned for its environmental practices, including the use of wind power and being Forest Stewardship Council certified. 

Paper roses

Industry leader Hallmark is always on the lookout for breakthrough ideas, formats and inventions, says Melton. 

“For example, this Valentine’s Day, shoppers will find blooming paper roses, cards that transform into pop-up lanterns and cards that feature a variety of light technology, such as color-changing lights and Light Pipes that create synchronized animation,” Melton says. “Additionally, our Greetings Innovation Lab is hard at work coming up with the next greetings’ idea to make the consumer’s experience sending a card that much more relevant and unique.”

The handcrafted feel is expected to be popular in 2017, say manufacturers. 

“Hallmark Signatures features luxurious textiles, special touches such as gems, and heartfelt messages,” Melton says. “In 2017, we are extending our Signature product line with hundreds of new card designs, a new premium Spanish collection, new captions and price points. In addition, retailers will have the opportunity to showcase this trend with our new Signature merchandising solution. Our premium line of products is highlighted on the shelves via newly designed signage made of rich textured paper stock embossed with Hallmark’s logo,” he says.   

Baucco concurs. 

“Currently, consumers are responding to hand lettering, texture and messages that are playful and positive,” she says. “Hand lettering gives consumers a sense of craftsmanship that conveys the quality of the communication. Our digital world has consumers touching things that are so smooth, our fingers are hungry. Texture and dimension fill a need, as well as deliver on the artisanal elements consumers enjoy.

“Consumers are also looking for clever and unexpected new ways to say things, and this is especially true for affirming messages,” Baucco adds. “Even if they are acknowledging something difficult, consumers want positivity to be the prevailing feeling the recipient is left with.”   

Cards based on licensed characters also remain popular.

“We recently expanded our portfolio to include Hasbro, Mattel, Hello Kitty and Lego Batman/Ninjago,” Melton says. “We invested in Trolls, based on the hit November 2016 film, and will have products all year long. Star Wars continues to stay relevant with its new film franchise and cultivation of fans across all age groups. We also have significant opportunities to support retailers as they prepare for big in-store initiatives surrounding the expected 2017 blockbusters, including Despicable Me 3, Cars 3, Spider-Man, Justice League and Star Wars Ep. 8.”

American Greetings also has a full slate of licensed characters hitting the shelves.

“The magic of Disney, the rich storytelling of Pixar, the galactic fun of Star Wars and the action-packed thrills of Marvel are now captured in greeting cards that make the American Greetings card aisle the destination for epic celebrations,” Baucco says. 

“Brand new cards with beloved characters like Mickey Mouse, Cinderella, Buzz Lightyear, Marvel’s Avengers and even Darth Vader will help consumers celebrate most occasions throughout the year. Whether someone’s wishing upon a star or obsessed with Chewbacca or Spider-Man, card senders can make life’s special moments even more personal with their favorite characters,” she says.   

Those cards might be the ones that reach out to Millennials.

“Studies we have done in the industry show that young people are buying cards,” LLansó says. “Young people are definitely communicating with social media a lot more than Baby Boomers, but we’ve found that those Millennials actually are buying and spent more money on greeting cards last year than the Baby Boomers. However, they are buying them in different places and buying cards that speak to them and are more authentic to their needs. In a way, social media can remind people to send cards.”  

LLansó suggests retailers capitalize on the “local movement” that is sweeping the grocery and perishables aisles by stocking locally-produced greeting cards. 

“Just like grocery stores will buy more locally-grown products, retailers can get cards from a publisher that is local,” he says. “A lot of regional supermarkets are putting in local cards. If you are a supermarket in Central Massachusetts, for example, you might have cards from a local photographer or local artist that will be appealing to the people who shop at your supermarket.”