Mothercare group sales down 7.4% in Q3
Mother and baby products retailer Mothercare has suffered a 7.4% drop in total group sales following a poor performance in the UK although international sales achieved double-digit growth.
In the 13 weeks to 12 January 2013, total UK sales fell by 12.9% while on a like-for-like basis sales declined by 5.9%.
The retailer said its three-year Transformation and Growth plan was on track as its works to turnaround its UK business while growing international profits.
Mothercare continued to close its loss-making UK stores in the quarter, shutting eight Early Learning Centre and three Mothercare stores. This leaves the company with 269 UK stores compared to 311 stores at the beginning of the financial year.
Never Miss a Retail Update!The transition to a new online platform and new mobile initiatives helped to drive a 12% increase in Direct in Home sales.
Mothercare opened a net 31 international stores during the quarter, and now operates from 1,129 stores across 61 countries. Its full year target of circa 15% space growth is unchanged.
International retail sales grew by 14.8% while retail sales were up 12% as progress from countries such as Russia and Turkey offset weakness in the Eurozone.
Simon Calver, Mothercare chief executive, said: “We have made solid progress during Q3, despite a challenging consumer backdrop for the UK and Eurozone.
“Our work towards delivering improved value, choice and service for our customers continues to make an impact and I am very encouraged by the new ranges and innovative product ready to go into stores for spring/summer 2013.”
Olga Nazarkova, Head of International Retail and Ecommerce, Mothercare will take part in a interactive Group Panel Discussion at the Retail Bulletin’s International Expansion Summit, 26th March 2013. The theme of the discussion will be Internationalisation of ecommerce: driving profit abroad. Register now for this timely, one day summit.
