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Mothercare's UK sales return to underlying growth

British mother and baby products retailer Mothercare said it returned to underlying sales growth in its home market in the second quarter.

However, growth slowed a touch in the firm's overseas markets.

Mothercare, battling competition from supermarkets and the internet as well as a weak UK consumer environment, said sales at UK stores open over a year rose 0.3% in the 13 weeks to October.

That compares with a like-for-like fall of 6.7% in its first quarter.

Mothercare's strategy under chief executive Simon Calver, the former head of Amazon's LOVEFiLM International unit who joined in April, is to reduce the firm's UK store portfolio to a profitable core of 200, introduce more products at different price points and improve customer service.

The UK business made a loss of £25m in the 2011/12 year. The group also plans to accelerate international growth and increase its internet presence.

In the second quarter international retail sales rose 10.8%, having been up 11% in the first quarter. Mothercare's total network sales rose 3.2% in the second quarter, the company said.