Mothercare group is to concentrate most of its activity online – spearheaded by former LoveFilm chief Simon Calver – after revealing it will close a further 111 UK stores over the next three years.
The move comes after the maternity and childrenswear retailer reported that full year like-for-like sales for 2011 fell by 6.2% in the UK.
It will reportedly result in more than 700 job losses, and will reduce the company’s portfolio of outlets in Britain to 200.
The closures will mainly affect Early Learning Centre (ELC) stores – 75 of these will be shut down compared to 36 Mothercare shops. The chain has already shut down 62 shops in the past year and predicts the closure programme will improve its UK profits by £13m by March 2015.
Executive chairman Alan Parker said: “Today marks the beginning of a three-year turnaround and I am confident we will deliver a sustained recovery and long-term success.”
Meanwhile rival online firm Kiddicare has revealed that it is expanding offline by opening 10 superstores around the UK. The decision was sparked after it saw sales grow 30% year-on-year, with its flagship store in Peterborough achieving sales of £8m.
