Blog: Mothercare makes child's play of recession
Leonie Barrie | 18 November 2009
Baby and children's goods retailer Mothercare Plc seems to be making child’s play of the recession, with first-half like-for-like sales up 4.1% and its 17th consecutive quarter of UK sales growth.
Earlier this year, the retailer put its success down to the fact “people keep spending on their babies long after they stop spending on themselves.”
But it has also been helped by new products – including the re-launched M2B maternity range and the 'Baby K' clothing lined designed with celebrity mum Myleene Klass – strong online sales and giant strides in international markets, which have all combined to make it the go-to destination for everything related to pregnancy and early childhood.
And it’s now shaking up its stores too, with plans unveiled today for 31 new parenting centres across the UK – Mothercare's largest and most profitable UK store format – over the next three years.
Crucially, one of the reasons the retailer is able to embark on this ambitious roll-out is the dire state of the UK property market, which means it has been able to negotiate advantageous lease terms and enter key catchments where it would previously have struggled to make a profit.
And landlords should also brace themselves for some more hard bargaining after the retailer warned it would close or relocate more than 90 of its least profitable high street stores where the lease expires within the next three years – unless it can renegotiate rentals.
Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...
The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...
The results of two highly-anticipated initiatives in the sportswear sphere were revealed last week: the launch of Under Armour’s new UAS lifestyle brand and the first pair of running shoes created at ...
The recent bankruptcy of South Korea's Hanjin Shipping, the world's seventh-largest container shipper, at the end of August, has left billions of dollars worth of merchandise in limbo, leaving the fal...
- Under Armour Lighthouse will disrupt production
- Will new Vietnam wage hinder competitiveness?
- How TAL Apparel is staying ahead of the game
- Digitisation to drive new apparel-making models
- Ethiopia violence undermines sourcing strategies
- Marks & Spencer top for modern slavery reporting
- Bangladesh garment workers rally for higher wages
- MAS Holdings shares commitment to sustainability
- H&M CEO named sustainability leader
- Gap to shutter all UK Banana Republic stores
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020