Shoppers Retreat To Sentimental Gifts
18 December 2008
Kenny’s Aims To Capitalise As Shoppers Retreat To Sentimental Gifts
Leading retailer of greeting cards, toys and gifts Kenny’s Cardiology has embarked on its biggest ever Christmas marketing campaign to attract consumers who are worried about the global economic crisis and looking to give less-expensive, sentimental gifts this festive season.
The company is optimistic it will enjoy a bumper Christmas sales period on the back of the “It’s the little things that make Christmas magical” campaign, because its product offering is perfect for increasingly budget-conscious times.
To support the campaign the company has produced an unprecedented 1.4 million catalogues in Australia, 155,000 catalogues in NZ and conducted a mail out to all of its 50,000 club members.
Kenny’s Cardiology Managing Director Anthony Underwood said the company, which has experienced rapid growth over the past year, was confident its message would hit the right note with cautious consumers who were concerned about a looming economic downturn.
“In boom times people tend to splash out on the credit card to buy expensive Christmas presents but when times get a bit tougher and people are worried about their investments and their jobs they are more likely to opt for a better value, sentimental gift,” Mr Underwood said.
“That is exactly the market segment where Kenny’s Cardiology is the king and we expect to have a lot of customers at Christmas this year who we might not normally see. We have been around in Australia since 1986, and more recently launching in New Zealand, if there is one thing we know from previous downturns it’s that we flourish when the big ticket retailers are struggling.”
To encourage customers to spend at least $20 in-store, Kenny’s is running a competition where customers who spend $20 or more will go into a draw to win a family holiday to Disneyland. Most presents in the Kenny’s Christmas catalogue are under $25 including soft toys from $10.95.
Kenny’s Cardiology is owned by leading ASX-listed owner, operator and developer of franchises Allied Brands Limited which also owns the Baskin Robbins, Cookie Man, Awesome Water and Awesome Entertainment franchises with more than 250 stores in Australia and New Zealand.
Allied Brands has grown Kenny’s Cardiology store numbers from 32 to more than 50 since it acquired the business in July 2007, including opening its first store in New Zealand in June 2008 and now has a total of five in Auckland and another due to open in the new year in Queensgate, Lower Hutt.
Kenny’s Cardiology stores specialise in cards and gifts for all occasions and all ages and have built a strong following since the opening of the first store in Adelaide, Australia in 1986.
Kenny’s Cardiology plans to open as many as 30 stores in New Zealand within three years and 55 in Australia by the end of 2009.