Tesco buys Paperchase but not its shops

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The key challenge for Paperchase has been many store locations based around commuter hubs, which have had a low and then declining footfall since the pandemic.

Many online card companies, for example Moonpig, have improved their online offerings, tempting consumers to create their own bespoke cards. They have also used data successfully, such as reminding users of birthdays or anniversaries to prompt them to purchase again – something Paperchase has never leveraged.

It will be interesting to see if the Paperchase purchase for Tesco enhances its Tesco Photo Printing offering, as Paperchase products seem a natural bolt on and could create quite a strong offering for them in this space.

With all grocery retailers under pressure to discount food product costs for customers, they will all be looking for new revenue streams, and this on the face of it seems like good value for the company.