Mothercare cheers boom in home delivery baby products
BABYCARE chain Mothercare yesterday showed it was shrugging off the retail gloom, reporting a 9.4 per cent jump in group sales, as shoppers flocked to stock up on summer lines of baby products due to the warm weather.
Underlying UK sales rose 5.1 per cent for the 15 weeks to 10 July, while sales at Direct in Home, its home delivery business, grew 17.4 per cent.
Many retailers are struggling as cash-strapped consumers think twice before making a purchase amid redundancy fears.
But Mothercare has bucked the trend, benefiting from selling essential products for parents, a fast-growing internet and home shopping business and the successful integration of the Early Learning Centre (ELC).
The group trades from 1,014 stores in 51 countries. The group opened 30 new stores overseas during the quarter — mainly in Eastern Europe and the Middle East — and now has 63. Its international expansion delivered strong results, reporting a 32.7 per cent lift for the period. Mothercare is expected to report a pre-tax profit of £40m for the year to the end of March 2010.
Chief executive Ian Peacock said: “The international business continues to grow rapidly and was boosted by the weakness of sterling.”
He added: “While this has been a positive start to the year, we continue to manage the business tightly in an uncertain global consumer environment.”
Mothercare, which acquired ELC for £85m in June 2007, said its summer sale was going to plan, leaving it with a clean stock position at the start of the new season.
The group also said its recent partnership with musician and presenter Myleene Klass for the Baby K range had been successful in the UK and internationally and it plans to extend the label into its home and travel sectors.