Tuesday, November 5, 2024

Card Factory blames minimum wage for profit slump

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Card Factory, the greetings cards and gift retailer, has blamed the increase in the national living wage for a slump in profits.

Shares in the retailer fell 16 per cent in early trading after it reported that first-half pre-tax profits dropped 43 per cent to £14 million, “predominantly driven by the increase in direct costs as a result of the impact of minimum wage increases”.

A number of businesses have warned of the impact of rising wages on profits after the UK’s national living wage rose by 9.8 per cent to £11.44 an hour in April.

Workers on lowest pay set for 6% rise in minimum wage

Card Factory said that higher international shipping and packaging costs had also hit profits.

However, the retailer

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