Mothercare UK like-for-like sales down 1.9% in second quarter
Mothercare saw its UK like-for-like sales drop by 1.9% in its second quarter as the retailer struggled against a highly promotional market in the home and travel categories.
In the 13 weeks to 12 October, total sales dropped by 6.9% in the UK. However Direct in Home sales, which includes online and catalogue sales, increased by 8.3% as the retailer worked to improve its service for customers with next day click-and-collect extended to all of the UK.
Mothercare chief executive Simon Calver said: “In line with the Transformation and Growth plan, we are continuing to make fundamental improvements to our business in the UK, which will allow us to compete effectively in a changing marketplace.
“However, the UK market in Home and Travel remained highly promotional and Autumn/Winter Clothing faced the same warm weather challenges as the rest of the sector but is gaining market share. Whilst this has resulted in a margin environment that is more challenging than expected, we continue to focus on profitable sales and cash margin.”
Never Miss a Retail Update!International retail sales fared better rising by 12.6% in constant currency with all four of Mothercare’s regions reporting positive growth.
In line with plan, the retailer reduced its UK space by 6% year-on-year as a further five loss making stores were closed during the quarter. International space increased by 11.9% with 2.5 million square feet of retail space
Across the group, total network sales grew by 3.9% in the 13 week period while total sales edged down 0.5%.
Calver continued: “We have delivered another quarter of growth in worldwide network sales. We now operate from 1,393 stores across 60 markets. As planned, during the quarter we closed a further five loss making stores in the UK, and year-on-year increased space by 11.9% across our International markets.
“We continue to see double-digit growth in International retail sales, benefitting from the strength and diversified nature of our International business.
“UK Direct delivered another quarter of growth and we expect further multi-channel progress as we continue to improve our service for customers with next day click-and-collect extended to all UK Early Learning Centre stores in time for Christmas trading.”
