April 2012 Update
One year on from our first news of Mothercare closing down stores, Mothercare has announced new plans to close more stores.
36 more Mothercare branches and also 75 Early Learning Centres will close down over the next 3 years with 730 jobs at risk.
International sales continues to grow with over 1000 stores globally.
May 2011 News
Mothercare has announced it plans to close 1 in 4 of its UK stores over the next 2 years. Mothercare has had 2 hard years in a row caused by falling demand and increased competition for its goods.
Pre-tax profits have crashed by over 70%, with profits for 2010 reported at £8.8 million. The previous year saw profits of £32.5 million.
Mothercare have announced that they plan to close 107 of their 373 stores. Over the next 2 years 120 leases are due to expire so these are the stores which it will be closing down. Although these store closures will see many jobs lost Mothercare hopes that it will result in an addition £4-5 million profit per year.
It will mostly be closing down its High Street stores and keeping the larger out-of-town and retail park stores. Some towns such as Chelmsford have 2 Mothercare stores within walking distance of the town centre, is it likely that these are the types of store that will be closed first – although we have not had any confirmation regarding the Chelmsford store.
Bad Weather and Bad Christmas
Mothercare blame the bad weather and resulting bad Christmas sales for their most recent problems although there is an ever increasing amount of competition coming from online retailers which can provide goods direct to customers at discount prices.
It is not all doom and gloom though as Mothercare have seen their international business grow by 16.3% over the last year. This increased annual revenue by around $800 million. Mothercare are hoping to open 150 new stores globally over the next year.
Mothercare had warned the stock market that its profits were likely to fall short of previous expectations.
Mothercare Stock and Shares
MOTHERCARE (LSE: MTC.L Ticker: 906744 / ISIN: GB0009067447)
For latest prices see http://www.google.co.uk/finance?cid=668797