Mothercare like-for-likes still down
New chief exec launches review of distribution
January 14 2003
Mother and baby products retailer Mothercare saw group sales increase by 1.6 per cent in the 13 weeks to January 20.
However, like-for-like sales in UK store were down 1.1 per cent. The retailer has been hit by distribution problems over the past year and has struggled in the increasingly competitive children’s clothing market.
The company said that new chief executive Ben Gordon, who joined at the beginning of December, “is undertaking a detailed operational review that includes options for distribution.”
Gross margins improved by 3.1 per cent in the 12 weeks to January 3, reflecting less promotional and discounted stock. Mothercare said autumn and winter stocks have been substantially cleared by the post-Christmas sale, with the remainder to be sold through clearance stores.
However, despite the improvement in gross margins, Mothercare said: “The lower than forecast sales during this peak trading period will result in a trading outcome for the current year worse than expectations.”
