Mothercare To Close 110 UK Stores - Sky News

6:03pm UK, Wednesday May 18, 2011

High-street retailer Mothercare is to close over a hundred stores across the UK in a bid to slash costs.   

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The retailer will shut 110 high street stores, mostly Early Learning Centre operations, and focus instead on its out-of-town Parenting Centres and its booming operations abroad.

Mothercare says around 250 employees will lose their jobs as a result of the changes.

Total store numbers will fall from 373 to 266 in the UK but the company says it expects big savings from the restructuring.

Over the last three years it has reduced its town estate by a quarter.

The chain's UK problems meant pre-tax profits fell from £32.5m to £8.8m in the year to March as sales dropped 0.5%.

But revenues rose 4% to £794m last year, with online revenues jumping nearly 10%.

In the UK Mothercare will focus on its Early Learning Centre brand

Chief executive Ben Gordon said he expects the UK retail environment to remain challenging, but plans to step up international expansion, especially in Asia.

International sales jumped by 16% and nearly three-quarters of total revenues came from overseas in the year to March.

A further 150 overseas stores will open this year, generating 15% to 20% sales growth.

Maureen Hinton, practice leader at Verdict Research said: "The Mothercare brand has an increasingly wider global presence as it expands internationally.

She added: "It has a strong brand that resonates with parents all over the world."

As revealed by Sky News City Editor Mark Kleinman, Mothercare is also looking for a successor to Ian Peacock, its long-serving chairman.

Mothercare has hired a headhunter to identify a candidate to replace Mr Peacock.