Retailer Mothercare has accelerated its programme of closures, shutting down 56 loss-making shops last year.
Chief executive Simon Calver said the company the closure programme was “ahead of our plan for the year” in a subdued trading update for the 11 weeks to the end of March.
It closed 14 shops – four Mothercare and 10 Early Learning Centres – in the quarter, exceeding its original target by six.
It takes the total number closed in the past 52 weeks to 13 Mothercare shops and 43 Early Learning Centres around the UK.
It now operates from 255 UK shops – 196 Mothercare, 59 ELC.
Total space has been cut by 7.2% year-on-year.
A strong performance in the company’s Direct Home division softened the impact of the closure programme in the quarter.
Mothercare’s overall UK year-on-year sales were down by 5.1%, while net debt rose to £35m at 30 March.
Calver said: “Mothercare has continued to make progress both in the UK and across its international businesses. In the UK we closed 56 loss-making stores, which is ahead of our plan for the year and is helping us become more efficient.
“We continue to be focused on delivering cash margin. International regions delivered double-digit growth despite the challenges of the eurozone and we remain excited about the growth potential for all our international regions.
“We are just 12 months into our three-year transformation and growth plan and while we still have much to do, our business is already on a firmer footing.”
jack.sidders@estatesgazette.com
