Fexco take major interest in vouchers

KERRY-BASED financial services group Fexco could be in line for a major expansion in Britain after buying a majority stake in The Gift Voucher Shop, the company that sells gift vouchers for over 500 shops through the Irish post office network.

The Gift Voucher Shop was set up in September, 2002, and was among the first companies in the world to offer gift vouchers for multiple retailers through a single distribution network. The company sells gift vouchers for well-known shops, including Brown Thomas, Arnotts and Argos, through over 1,000 post offices in Ireland as well as by phone and internet. The company has enjoyed considerable success in Ireland and expects to record gift voucher sales of up to 30 million in the current year.

Plans to expand the service to Britain in future years could result in annual sales of many times this figure.

The Gift Voucher Shop employs 21 people in Swords, Co Dublin, and aims to tap into the growing market for gift vouchers, which industry estimates said could exceed €200 million each year. Recent American research found that 8% of all gifts now take the form of gift vouchers. The gift voucher market in Britain is worth in excess of €3 billion.

Fexco declined to say how much it paid for the majority stake in The Gift Voucher Shop. “This investment establishes the Fexco group in a market leading position in a high growth payments market in Ireland. It also brings an energetic, innovative management team into the group to further develop opportunities in this market both in Ireland and globally,” said Brian McCarthy, Fexco founder and chairman.

Michael Dawson, The Gift Voucher Shop’s managing director and one of the company’s founders, said he was “thrilled” with Fexco’s investment and added that the company would benefit from a partner with such a strong brand name. Mr Dawson said the investment would allow The Gift Voucher Shop to exploit its unique position both in Ireland and in international markets. The company’s agreement with An Post is already the largest third-party sales channel in the post office network.

The company also took charge of the Esso Tiger Miles loyalty scheme earlier this year. The scheme rewards motorists who buy petrol at Esso forecourts with points.