Mothercare appoints new CEO

British baby goods retailer Mothercare Plc, which last month warned on fullyear profit, said yesterday that chief executive Mark Newton-Jones stepped down and appointed retail industry veteran David Wood as new CEO effective immediately.

Mothercare, a popular British high street name, has been trying to revive its business that has come under pressure from weak footfall across retail destinations and tough competition from online sellers.

The company has devised strategies on new store formats, online business and better product offering to turn around its business after years of slowing sales.

“We have made positive progress but it is essential that we have the most effective leadership in place to meet our ambitions,” chairman Alan Parker said in the statement.

“Wood has considerable experience gained across a number of international consumer facing brands, with a strong track record for turning around and growing retail businesses,’’ Mothercare said.

He was previously group president of Kmart Holding Corp, a US grocery retail and pharmaceutical business, where he successfully transformed the customer value proposition and retail operating model, returning the business to sustainable profit growth.

Prior to this, Wood held a number of senior commercial, marketing and general management positions at Tesco Plc where he achieved similar results in the UK and internationally.

In March, Mothercare warned that its full-year profit would likely come in at the lower end of its already slashed guidance and that its lenders had agreed to defer testing of financial covenants.