Turnaround efforts paying off as UK sales grow at Mothercare
RETAILER MOTHERCARE has notched up further UK sales growth thanks to turnaround efforts, while the weak pound offset flagging overseas trade.
The baby care chain posted a 1.9 per cent rise in UK likefor-like sales for its first quarter to July 8, although total sales fell 1.8 per cent as it axed more stores under a sweeping overhaul.
Mothercare saw international sales rise 2.2 per cent, but plunge 8.3 per cent with the boost from the Brexit-hit pound stripped out.
The group said it was knocked by ongoing woes in the Middle East, where consumer confidence has been impacted by low oil prices and fears of an economic slowdown.
Its update also showed online sales growth slowing sharply in the UK, to 3.3 per cent in the 15week quarter, although Mothercare insisted this was not the start of an “underlying permanent shift in customer behaviour”.
But the group joined retail rivals in cautioning over an “uncertain” consumer outlook as shoppers remain under pressure from Brexit-fuelled inflation.
Shares fell 5 per cent after the update.
Chief executive Mark NewtonJones said: “We have continued to make progress in the UK during the period.
“We have seen customers respond well to our end-of-season sale, which we entered with less stock than last year.”
He added: “We are about to launch our autumn ranges, but it remains uncertain how consumers will respond to inflation.”
Mothercare is shutting a swathe of high street stores under a revamp plan led by Mr Newton-Jones.