More Mothercare Commercial Properties Set to Close Over Three Years

Posted on 16 April, 2012 by MOVEHUT

In November last year, Mothercare planned to close 110 commercial properties by March 2013 to bring its portfolio to 266 stores. But since the weak sales have shown no signs of improving, Mothercare have now announced plans to close a further 66 stores by March 2015.

Currently, the group has 311 commercial properties in its portfolio, which include both Mothercare and Early Learning Centre’s (ELC). The group have already closed 62 stores in the past year. To make the 200 commercial property target, the group will close 36 Mothercare stores and 75 Early Learning Centres across the UK.

The news came after the group reported a 9.5 per cent drop in like-for-like sales for the first three months of 2012. However, the group is confident it can survive on the High Street by slashing its property portfolio. Speaking of the closures, Alan Parker, Executive Chairman, said: “Mothercare is a great global brand with strong international partners.

“Today marks the beginning of a three-year turnaround and I am confident we will deliver a sustained recovery and long-term success.”

The Next Three Years for Mothercare

Over the next three years, the group plans to reduce its outgoings, mainly by reducing the number of commercial proprieties and only keeping ones that are ‘profitable’ and have high numbers of footfall. Also, the group will review its payroll at its Head Office – this could mean that around 90 roles could be cut, which equates to 16 per cent of the workforce.

As well as reducing the workforce, the group have recently appointed a new Chief Executive Officer, as the position has been vacant since November 2011. Simon Calver will join the company in April and will lead the three year strategy to turn Mothercare around.

Speaking of the strategy, Mr Parker stated: “We launched a structural and operational review, appointed a new CEO, closed a significant number of underperforming stores and commenced a consultation programme to streamline our head office function.”

It is not yet known which stores will succumb to the chop, but it is understood that the remaining 200 stores will consist of 105 high street town centres and 95 out-of-town locations, which include those in retail parks and shopping centres. Mr Parker hoped that the strategy will “Restore the UK business back to profit and strengthen our foundations for growth.”

The Last Half Century for Mothercare

Mothercare opened its first commercial property in 1961 and quickly expanded its range of baby products, clothing and accessories. The company has merged with a few chains over the last 51 years. In 1982 Mothercare merged with Habitat, and four years later the company combined with British Home Stores PLC. It wasn’t until 2000 that the company became Mothercare PLC after being rationalised in the 1990s.


The company bought the Early Learning Centre in 2007 and also launched a social networking website for expectant and new mothers, named Gurgle.com, in the same year.




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