Card Factory (LON:CARD) Surges as WH Smith (LON:SMWH) Divests FunkyPigeon

3 min read | July 29, 2025 07:56 PM AEST | By Team Kalkine Media

Card Factory (LON:CARD) Surges as WH Smith (LON:SMWH) Divests FunkyPigeon — Image source: shutterstock

Strategic Divestment and Market Reaction

The transfer of FunkyPigeon to Card Factory arrives as WH Smith finalizes broader structural changes. The latest agreement follows WH Smith’s earlier divestment of its UK High Street business. The company's moves point to a long-term commitment toward its global travel retail model. Following the announcement, Card Factory’s market performance showed upward movement, whereas WH Smith experienced a minor decline.

Card Factory Strengthens Core Business

With FunkyPigeon now under Card Factory’s umbrella, the brand is consolidating its footprint across both physical and digital platforms. The acquisition complements existing operations by adding an established e-commerce presence to its portfolio. This step aligns with Card Factory’s digital growth initiatives and helps widen its consumer reach beyond its high street presence.

WH Smith Reinforces Travel Focus

WH Smith has signaled its firm transition from high street retail toward becoming a dedicated global travel retailer. The brand continues to operate across major travel hubs such as airports and railway stations. This strategy is supported by a wide presence in domestic and international travel locations. By redirecting resources away from non-core divisions, the company aims to strengthen its travel-focused services.

Recent Portfolio Changes

Earlier in the year, WH Smith completed the of its UK High Street division to Modella Capital. That deal marked the beginning of a refocused model centered exclusively on travel. As a result, many of the former high street outlets are expected to be rebranded, distancing the company from traditional brick-and-mortar retail and further underlining its strategic pivot.

Use of Proceeds

Net proceeds from the FunkyPigeon divestment are allocated towards reducing existing financial obligations. This move is positioned to reinforce WH Smith's capital structure as it seeks to streamline operations. The completion of the transaction is subject to standard regulatory conditions, with closure expected by the end of the calendar year.

What is the latest move by WH Smith (LON:SMWH)?
WH Smith has sold its online card business, FunkyPigeon, to Card Factory to concentrate on global travel retail.

How does the acquisition benefit Card Factory (LON:CARD)?
The addition of FunkyPigeon strengthens Card Factory's digital platform and complements its greeting card portfolio.

What are WH Smith’s plans for the funds?
The funds are planned to be used to reduce company debt and support a leaner operational model.

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