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Mothercare sales fall in 'challenging' trading | Mothercare sales fall in 'challenging' trading |
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Mothercare warned of challenging trading in the UK and across the eurozone as it reported a 3.4% fall in quarterly sales. | Mothercare warned of challenging trading in the UK and across the eurozone as it reported a 3.4% fall in quarterly sales. |
Shares fell more than 6% after the loss-making mother and baby goods retailer warned that the downbeat sales outlook would continue for the rest of the year. In the UK, it reported a steep decline of 7.9% in the 15 weeks to 13 July, although store closures accounted for most of that fall. | Shares fell more than 6% after the loss-making mother and baby goods retailer warned that the downbeat sales outlook would continue for the rest of the year. In the UK, it reported a steep decline of 7.9% in the 15 weeks to 13 July, although store closures accounted for most of that fall. |
The retailer said its home market was very competitive, adding that sales of toys, home and travel goods in particular had been hit by heavy discounting among its competitors. | The retailer said its home market was very competitive, adding that sales of toys, home and travel goods in particular had been hit by heavy discounting among its competitors. |
Simon Calver, the chief executive, however, said it was ready to capitalise on the arrival of the royal baby, due any day. He said Mothercare had put together a celebration range that included "Born to Rule" sleepsuits and "Princess/Prince in training" bibs and vests. The flagship Oxford Street store in central London will be transformed to mark the occasion. | Simon Calver, the chief executive, however, said it was ready to capitalise on the arrival of the royal baby, due any day. He said Mothercare had put together a celebration range that included "Born to Rule" sleepsuits and "Princess/Prince in training" bibs and vests. The flagship Oxford Street store in central London will be transformed to mark the occasion. |
"It's hard to gauge what sort of increase we have. I think there will be a feelgood factor and who knows, in nine months' time, there may even be a tick-up in the birth rate," Calver said. | "It's hard to gauge what sort of increase we have. I think there will be a feelgood factor and who knows, in nine months' time, there may even be a tick-up in the birth rate," Calver said. |
Mothercare, which also owns the Early Learning Centre, said it closed 13 loss-making stores in the first quarter. It now has 242 stores in the UK, with 192 Mothercare shops and 50 ELC shops. | Mothercare, which also owns the Early Learning Centre, said it closed 13 loss-making stores in the first quarter. It now has 242 stores in the UK, with 192 Mothercare shops and 50 ELC shops. |
Calver also weighed into the business rate debate, as he said rate levels played a role in determining which stores to close. He said: "We base each closure on the contribution of each store and of course business rates play a part in that. There needs to be a rates freeze or action by the government because it is damaging the high street." | Calver also weighed into the business rate debate, as he said rate levels played a role in determining which stores to close. He said: "We base each closure on the contribution of each store and of course business rates play a part in that. There needs to be a rates freeze or action by the government because it is damaging the high street." |
Reacting to comments by the chief executive of Ocado, Tim Steiner, that bricks-and-mortar retailers should shut more shops and stop moaning, he said: "We're too busy to moan and our job is about keeping Mothercare running." | Reacting to comments by the chief executive of Ocado, Tim Steiner, that bricks-and-mortar retailers should shut more shops and stop moaning, he said: "We're too busy to moan and our job is about keeping Mothercare running." |
Elsewhere in the results, clothing sales in the UK were boosted by the Value Essentials range, introduced in July last year. | Elsewhere in the results, clothing sales in the UK were boosted by the Value Essentials range, introduced in July last year. |
The retailer said that while it still had "a way to go", it was working to transform the UK business. | The retailer said that while it still had "a way to go", it was working to transform the UK business. |
Mothercare's international business fared better, with sales up 14.1% following a 14% increase in trading space in the first quarter. It opened a net 47 stores during the period and now has 1,116 franchise stores across 60 countries. | Mothercare's international business fared better, with sales up 14.1% following a 14% increase in trading space in the first quarter. It opened a net 47 stores during the period and now has 1,116 franchise stores across 60 countries. |
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