Mothercare returns with sales growth

Baby clothing and equipment group Mothercare signalled it was beginning to bounce back today after seeing sales growth return to the business.

The retail group added it was ready to put last year’s Christmas nightmare behind it this time round, after improvements were made to its supply chain.

A year ago, teething problems at Mothercare’s warehouse in Daventry meant stores ran out of products over the crucial festive period.

But today Mark McMenemy, acting chief executive, said while warehousing and distribution costs were still too high, the supply issue had improved.

And like-for-like sales were up 1.4% in the five weeks to last Thursday after falling by 2.1% in the first half year, the six months to October 12.

Mr McMenemy said: “After a very difficult period for the business, the sales picture is now positive and the stores well stocked for Christmas.”

Mothercare warned it would fall into the red over the first half when chief executive Chris Martin stepped down four months ago.

It said anticipated improvements in sales since the start of the year had not been seen while markdowns to clear excess stocks had hit margins.