In a trading statement issued on Thursday, Mothercare has announced further plans to close some of its UK stores.
The statement says that they are to close 111 UK stores; 36 Mothercare stores will close and 75 Early Learning Centres are also set to close over the next three years. The closures are part of a reshaping of the business which has already led to the closure of 62 Mothercare and Early Learning Centre stores.
A structural and operational review of the business was announced in November and it is stated that the business will be focus on 200 profitable stores – 173 Mothercare stores and 27 Early Learning Stores – 95 of the stores are out of town and 105 of them on High Streets.
The strategy announced in November has four main aims which are to restore UK profitability, expands its international growth, launch a new website in the UK and 30 websites internationally, and to reduce central costs in the UK.
In a statement, Alan Parker, Executive Chairman, said:
“Since November, a significant amount of progress has been made across the business. We launched a structural and operational review, appointed a new CEO, closed a significant number of underperforming stores and commenced a consultation programme to streamline our head office function. We have also introduced immediate initiatives aimed at improving value and service for our customers.”
“Today we have announced the framework of our decisive three year strategy to restore the UK business back to profit and strengthen our foundations for growth. This will see us operate a lean, more competitive business, focused on the existing profitable stores in a smaller UK portfolio, combined with a state of the art online platform. Our International business continues to perform strongly and we plan to further accelerate growth.”
“…Mothercare is a great global brand with strong international partners. Today marks the beginning of a three-year turnaround and I am confident we will deliver a sustained recovery and long term success.”