THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Mothercare issues profit warning after UK sales fall

Mother and baby products retailer has warned that its full-year profits are likely to fall below expectations after UK like-for-like sales dropped by 4% in the 12 weeks to 4 January.

GENERAL MERCHANDISE

Mothercare issues profit warning after UK sales fall

Mother and baby products retailer has warned that its full-year profits are likely to fall below expectations after UK like-for-like sales dropped by 4% in the 12 weeks to 4 January.

Worldwide network sales were down 4.4% in the period while group sales fell by 6.1%

The retailer said its UK sales had been impacted by a high level of promotional activity and lower seasonal footfall during the Christmas trading period.

Mothercare chief executive Simon Calver said: "Difficult UK retail trading conditions and volatility in some of our international markets resulted in weaker than expected worldwide network sales this quarter.

"In the UK, our stores suffered similar Christmas trading pressures to those reported elsewhere. Customer service scores continue to improve year on year but weaker footfall and higher promotional activity led to lower sales and margins.”

Mothercare said its international business had been negatively impacted by currency deflation, weaker than expected economic conditions and unseasonal weather in some of its key markets such as Russia and the Middle East.

The retailer’s Direct at Home edged down 1% in the period following the decision not to repeat last year's free delivery offer. However, online sales via mothercare.com rose by over 15% as click and collect sales continued to perform well.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process