Mothercare reports sales drop despite online growth

Children’s clothing and toy retailer Mothercare has achieved growth in its online business against a backdrop of falling total UK sales.

The company has revealed that although sales made through its website rose by 24% year on year in the 15-week period to July 11, total UK sales fell by 0.9%. Worldwide, the retailer noted a similar performance, with international retail sales in actual currencies down by 4.8% compared to the same point in 2014.

Mothercare plc’s CEO, Mark Newton-Jones, commented: “Overall our trading is in line with expectations with the UK making a good start to the year and International seeing some macro volatility as anticipated.

“Trading across our International business has been more volatile as we have previously highlighted with increased macro headwinds impacting consumer confidence in a number of our markets.”

Mark added: “Despite this our International partners are building on the strong foundations already in place by continuing to open new space, positioning us well for the future when the outlook improves.”

While the company slashed its retail space in the UK by 5.3% year on year, internationally its store space grew by 7.9%. Now, the company trades in the UK from 180 stores comprising 1.64m sq ft of retail space, and 1,299 stores covering 2.97m sq ft of space internationally.

Discussing the company’s UK strategy, CEO Mark Newton-Jones continued: “We have delayed the end of season sale to take advantage of well controlled stock and the warm weather to sell more at full price.

“As a result margins are improving without adversely affecting like-for-like sales. Online has also benefited from lower discounts and promotions with the additional benefit of improved functionality.”

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