Mothercare moves to profit but warns of another swathe of store closures

RETAILER MOTHERCARE has warned over a swathe of further high street store closures as it ramps up turnaround efforts, despite cheering its first UK profit for six years.

The babycare 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.

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 – with a surplus of £4.4m.

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

Mothercare has already shut 100 shops as part of its overhaul launched three years ago.

The firm has switched twothirds of the store estate to out-oftown locations, while 70 per cent has been refurbished.