Mothercare reports 3% sales decline

Under-pressure retailer Mothercare today announced another drop in UK sales as it continues to flounder at home but flourish abroad.

The mothers-to-be, babies and children’s goods group, which runs around 350 stores in the UK and 20 in Ireland, said that like-for-like sales in its domestic market were down by 3% in the 13 weeks to January 7.

The figure is better than the 7% decrease reported in August and included a 5% increase in December, although this performance was helped by comparisons with the cold snap the previous Christmas.

Total global sales were down by 1.2% despite a 3% increase in its worldwide network. Mothercare has 1,000 stores outside the UK.

Today’s update comes after a depressing 2011 for the group, which saw it place its entire UK business under review after half year losses of more than £80m (€96m) and the departure of chief executive Ben Gordon.

Executive chairman Alan Parker said: “In the UK, the better like-for-like sales performance was achieved in an increasingly competitive consumer environment.

“Additional promotional activity was successful in driving a 5% like-for-like sales increase in December.”