Mothercare is continuing its plans to turn the business around as the retailer reports a like-for-like sales increase of 1.1 per cent in the UK.
The third quarter results of 2014 suggest the start of a climb back to form for the babycare retailer that suffered heavy losses last autumn.
Mark Newton-Jones, Mothercare chief executive now insists that the growth – albeit slow – are ‘in line’ with his strategy to revive the retailer, which has struggled from years of underperformance in the British market, reports the Financial Times.
Mothercare’s UK online sales were up 16.1 per cent for the 13 weeks ending January 10, while total UK sales declined 1.9 per cent. Oversees, the group’s international performance has seen sales increase 14.4 per cent.
As part of Newton-Jones’ plans to rebuild the firm, promotional activity continues to be reduced.
“We have continued to reduce the level of promotional activity and went into the end of season sale on Boxing Day with less stock and later than in recent years,” he said.
“These actions are re-establishing Mothercare as a full-price retailer and in turn stabilising our margin.”