Mothercare to cut store estate further

Retailer Mothercare has warned over a swathe of further high street store closures as it ramps up turnaround efforts, despite posting a first UK profit for six years.

The baby care chain said it would slash its 152-strong UK store estate further to between 80 and 100 shops as it moves to the “second phase” of an overhaul.

Mothercare has already been axing loss-making shops and refurbishing its estate to boost flagging UK sales, having shut 21 stores in the year to March 25.

The stores which will be cut have not yet been identified by the chain.

A spokesman said the estate would be reviewed as leases for existing premises came up for renewal.

The chain operates a number of outlets across Scotland, including stores at Dundee’s Gallagher retail park and at Fife retail park in Kirkcaldy.

Chief executive Mark Newton-Jones said he wants stores to be focused on key locations nationwide, while acting as specialist advice and service points to support online sales.

He said: “We are clear in the role our stores will play for the future, by offering specialist advice and service and first class product presentation.

“Store numbers will reduce over time as we focus on a regional presence in key conurbations across the UK.”

His turnaround efforts have been helping return the UK arm to health, with the group seeing its first underlying profit for six years in the final half of its financial year.

The UK remained loss-making overall in the year, with underlying losses of £4.4 million after a “difficult” first half, but this was narrowed from losses of £6.4 million the previous year.

Mothercare is reviewing its estate.