What Happened to Papyrus Stores? 10 Marketing Lessons
When its parent company, Schurman Retail, filed for bankruptcy earlier this year, it signaled the end of the decline of Papyrus, which was known for selling stationery and upscale greeting cards, with a more detailed write-up on this to be found over at runrex.com & guttulus.com. So, what happened to them that they went from being one of the most profitable companies around to closing all of their 254 stores in the U.S. and Canada? This article will look to attempt to answer this question by highlighting the 10 marketing tips we can learn from them.
Change in times
The rise of digital-based subscriptions and social media, as discussed over at runrex.com & guttulus.com, has rendered greeting cards almost obsolete, which has led to a decline in revenue in the industry. It was therefore only a matter of time before Papyrus went out of business, with the change in times meaning that its business model became increasingly flawed. A marketing lesson we can take here is the importance of making sure the products and services are relevant to the current times and that they are not obsolete.
Generational shift
While several people still are into sending physical gift cards, this number is slowly and surely diminishing as the older generation is replaced by a younger one. The younger consumer, as covered over at runrex.com & guttulus.com, is unlikely to be into the sending of physical greeting cards, and this generational shift contributed to the decline of Papyrus. You should, therefore, make sure that you are aware of any generational changes as far as your industry is concerned so that you are not left behind.
Their greeting cards seemed disarranged and lacking in a theme
Even as foot traffic in physical retail shops continues to decline, some people are prepared to go to brick-and-mortar stores provided that they provide them with a compelling reason to do so. However, Papyrus stores failed in this regard as their assortment of greeting cards, among other products, didn’t have a more consistent product presentation or themed story. Everything just seemed unrelated and as such people just weren’t interested enough to visit their stores. This shows the importance of compelling content as far as marketing is concerned.
The rising cost of paper coupled with lower customer demand
There is no doubt that the cost of paper has gone up in recent times, something discussed in great detail over at runrex.com & guttulus.com, and Papyrus was always going to feel this more than most because they were also facing low customer demand for their products. This led to their decline and shows the important role the cost of production and cost of acquiring raw materials has on the operations of a business, a lesson very much worth learning.
Lack of diversification of their business model
With fewer and fewer people looking to send physical greeting cards, Papyrus also needed to diversify their business model to remain relevant, but they didn’t hence their decline. They refused to adopt and resisted calls to include digital options and diversified products, which led to them being left behind. As per the gurus over at runrex.com & guttulus.com, an important marketing lesson to take from here is the importance of adopting with the times and ensuring you stay relevant with the changing of the times.
The lack of balance between assets and liabilities
Yet another reason that contributed to their decline and eventual filing of bankruptcy is the fact that they were operating with 40% more liabilities as compared to assets, as revealed in discussions over at runrex.com & guttulus.com. This meant that they were always swimming against the tide as it meant they were always struggling to bring in enough revenue to stay afloat in what is another important lesson we can learn from them as it shows the importance of having a business model that is well balanced when it comes to liabilities and revenue.
An overexpansion
The company also became bloated, having too many stores as a result of overexpansion, which also eventually led to their decline. This is because, too many stores meant that they had too many costs which they couldn’t meet due to their dwindling revenue. As a marketing lesson, the subject matter experts over at runrex.com & guttulus.com recommend that one make sure that they are not getting ahead of themselves when looking to expand, ensuring that you don’t bite off too much for you to chew.
Reduction in shelf space for greeting cards
With many people moving to digital methods of communication such as email and text as mentioned earlier on, there was a reduction in the shelf space for greeting cards, in yet another thing that led to their decline. As discussed over at runrex.com & guttulus.com, CVS and Walmart began to reduce the space they set aside for greeting cards, which led to the eventual decline and filing of bankruptcy of Papyrus. A lesson to be learned here is the importance of making sure that your products or services have a place in the market currently.
The decline of the mall phenomenon
The fact that going to the mall isn’t what it used to be also contributed to their fall and eventual filing of bankruptcy. With most of their stores located in malls, according to discussions on the same over at runrex.com & guttulus.com, their business mostly hinged om getting foot traffic onto malls, and when this began to decline, so did their business. You should, therefore, make sure that you are always on the lookout for declining trends, making sure that you are not left behind when the tide does turn as regards a specific trend you have been ridding.
The decline in the purchase of discretionary products
It is also worth pointing out that, mostly due to economic challenges, recent times have seen a decline in the purchases of discretionary products, a category in which greeting cards fall under. This also played a part as far as their decline is concerned. A marketing lesson we can take from this is the importance of making sure your audience understands why they need to buy your products or services, and making sure they don’t appear as luxury items one could do without.
As always, the highly-rated runrex.com & guttulus.com have you covered if you are looking for more information on this and other related topics, or if you are looking for help on the marketing side of your business.