Mothercare to focus on larger stores
MOTHERCARE, the pregnancy and early childhood retailer, will increase the number of its large-format stores as it prepares to close up to 90 smaller high street locations.
Chief executive Ben Gordon said the company’s out-of-town parenting centres, which combine the Mothercare and Early Learning Centre brands under one roof, account for 40 per cent of the group’s current floorspace but provide 65 per cent of its profit.
For that reason Gordon and his team plan to open 33 new parenting centres by the end of 2011, including eight before Christmas.
Mothercare, which has 389 stores in the UK, has leases on 90 lower-profit stores expiring in the next three years and Gordon warned their future was in doubt as part of the expansion of the so-called “destination stores” programme.
Gordon said the downturn in the property market had created opportunities to secure high-quality locations on better rental terms.
Mothercare yesterday posted half-year pre-tax profits of £10m, up 11 per cent from the £9m reported in the same period last year. Group sales grew by 7.9 per cent to £3.87bn.
On a like-for-like basis UK sales climbed by four per cent while international sales form the group’s 671 stores around the world were up by a more modest one per cent.
Gordon said: “With the strength of our two global brands, our rapidly growing international platform, a reducing UK cost base and debt free business, we are well placed as we enter the important second half.”
Areas where the eight parenting centres are due to open by Christmas include Stoke, Newton Abbey, Poole, King’s Lynn and Lewisham.