Retail News CRM

Tag: Mothercare

  • Mothercare Malaysia retailer seeks IPO

    Mothercare Malaysia retailer seeks IPO

    Kim Hin Joo, operator of ELC and Mothercare Malaysia, is preparing for an IPO on Bursa Malaysia’s ACE Market. The move, expected to generate funding for the group’s further expansion and expenditure, will see a public issue of 76 million new shares (20 per cent of its enlarged share capital) and an offer of 57 million existing shares (15 per cent of its enlarged capital). Of those shares, 47 million will be reserved for selected investors. Pricing has yet to be decided.

    The firm’s non-executive chairman Pang Kim Hin will see his personal stake reduced to 62.3 per cent after the IPO from his current 90.3 per cent.

    Kim Hin Joo has 16 Mothercare locations and 11 ELC SIS in several major Malaysian centers, with 599 distribution points nationwide and 10 overseas. It plans to open four to five new Mothercare stores within the next three years in Kuala Lumpur, Johor Bahru, and outside the Klang Valley area.

    “We are in the midst of finalising a development agreement with toy retailer The Entertainer UK which will grant us the exclusive rights to open and operate The Entertainer toy outlets, and sell a broad range of toys,” the company said in a statement.

    “We target to conclude the discussions and sign the development agreement by the first half of 2019.”

    The group is also planning to concurrently revamp and upgrade its e-commerce platform by replacing its back-end IT infrastructure system and to expand its distribution portfolio.

  • Mothercare Vietnam opens second store

    Mothercare Vietnam opens second store

    UK-based baby-goods retailer Mothercare Vietnam is opening its second store, inside the newly-opened Vincom Landmark 81 in Ho Chi Minh City.

    Opened three months after the first store at Crescent Mall, the new 286sqm shop offers a full range of products for mothers, and for kids under five years old.

    The brand plans to open a third store by the end of this year at another, as yet unidentified, shopping mall.

    The baby goods retailer was brought to Vietnam under franchise agreement between Mothercare UK and IPP Group’s subsidiary ACFC, which also manages Gap, Nike, Old Navy, and Tommy Hilfiger.

    While expanding in international markets, the UK brand has shuttered stores in an effort to survive in its home market.

  • Mothercare plan after CVA approved

    Mothercare plan after CVA approved

    Mothercare is set to raise £32.5 million from its existing shareholders as part of a restructuring plan to secure its long-term future.

    The embattled retailer of baby and childrens goods has set July 27 as a deadline for raising the additional capital. Conditional on the share issue being fully subscribed, the company’s existing lenders have agreed to a revised debt facility of £67.5 million.

    A Company Voluntary Agreement (CVA) for the restructure of the business was largely approved, the exception being a plan to save Childrens World. In a statement, the company said it received insufficient support from creditors for the CWL plan, and as a result that business has been placed into administration, with 13 of its 22 stores to be transferred to other Mothercare group companies to continue trading.

    Combining the exit of CWL and other aspects of the Mothercare CVA, the company will close 60 UK stores, leaving it with just 77 by June next year. Of those, 19 will be on reduced rent.

    Clive Whiley, interim executive chairman, said when he joined the business just three months ago, Mothercare faced “a bleak future with growing and pressing financial stresses”.

    “We have worked tirelessly as a team to get to where we are today and this fully underwritten equity issue marks the end of this initial phase, returning the group to financial stability. This could not have happened without the support of all of our stakeholders for which we are very grateful.”

    He said that while the lack of full approval for the Childrens World CVA was disappointing, the company has found a solution which allows it to go “further and faster” with the right-sizing of its store portfolio.

    “We have also identified significant areas for further efficiencies and cost savings, which will underpin our return to a sustainable future.”

    The company said current trading continues to follow the patterns seen in the second half of the last financial year, with challenging conditions in the UK balanced by “some stability” in its international operations

    The group has identified cost savings totalling £19 million together with £10 million cash realisation arising out of the CVA plan and other initiatives.

    CEO Mark Newton-Jones said the group has gone through an “unprecedented period for UK retail”.

    “We have not been alone in facing a number of strong headwinds. However, we are now in a position to re-focus on our customers and improve the Mothercare brand both in the UK and across the globe. We have exciting plans ahead to revitalise the brand through enhancing our product ranges, improving our design and value, developing our digital and multi-channel proposition and investing in our people.

    “Our goal remains clear, to be the leading global specialist for parents and young children,” he concluded.

  • Mothercare creditors approve CVA plans

    Mothercare creditors approve CVA plans

    Creditors have given the green light to the Mothercare CVA plan which will lead to the closure of 49 stores and the axing if hundreds of jobs.

    The company voluntary arrangement was revealed last month after the company posted a  £72.8 million loss last financial year, despite the closure of more than half its stores over the past five years. The company admitted then it was in a “perilous” position.

    More than 75 per cent of creditors approved the plan – necessary for its implementation. As well as the closures, the embattled retailer will seek rent reductions on 21 store sites.

    The Mothercare CVA will not affect day-to-day operations with all stores continuing to trade for the time being.

    Part of the CVA is a £113.5 million refinancing package, including £28 million raised through the sale of new shares, and revised debt facilities.

    “We are very grateful for the support of our many stakeholders across our creditor base in supporting today’s CVA proposals,” said Clive Whiley, a turnaround specialist appointed acting executive chairman less than two months ago to help rescue the business.

    “These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally.”

  • Mothercare to close 50 stores in survival bid

    Mothercare to close 50 stores in survival bid

    Embattled UK baby goods retailer Mothercare is to close 50 stores and seek rent reductions on a further 21 as part of a plan to stay viable.

    The company has produced a Company Voluntary Arrangement (CVA) which also proposes axing hundreds of jobs.

    After posting a £72.8 million loss in its last financial year, and having already closed more than half of its stores in the last five years, the company has admitted it is in a “perilous” position.

    GlobalData said while the CVA gives hope for the chain’s survival, its problems run deeper than store leases.

    ‘‘Even if this CVA is approved the company’s future is not assured given greater issues in its business than an overambitious store estate: namely its inability to entice younger parents to its stores, something that value retailer, Primark, has been extremely successful at.

    ‘‘Mothercare is a household name in the babycare and baby equipment market, however over the past few years it has struggled to keep pace, losing market share to the grocers and the rising dominance of online players, with Amazon primarily, threatening its position,” said Mills.

    ‘‘While Mothercare was slow to move online, its website now drives almost half of its sales, though, as it has acknowledged, it requires further investment, and this rather than stores, is where it plans to spend the bulk of the cash it hopes to raise.”

    Mills said the stores which will remain trading if the CVA is accepted by creditors and landlords, need “a lot of attention”.

    “Effort is needed to make them more engaging, creating a sense of community through classes and events among its shoppers to ensure loyalty and repeat purchases.”

    If the CVA is approved – which is likely – mothercare would have just 73 stores trading by 2023.

  • When Forever 21 join India’s Jabong

    When Forever 21 join India’s Jabong

    Indian fashion portal Jabong has added American fashion brand Forever 21 to its product portfolio. It definitely will give another option for India’s shopper to check the collections of Forever 21.

    A selection of goods including play-in tops, dresses, t-shirts, cosmetics, intimates and shoes will go online on Jabong, priced from Rs.499 to Rs.2400 (US$7.50 to $37).

    Jabong has introduced 20 new fashion brands this month and says it will add a further 15 before March 31. These include New Era Caps, WROGN, Mothercare, Roadster, Cover Story, AAY, Zivame and Mast and Harbor. Jabong now has approximately 2000 brands in its product portfolio, out of which 50 brands have been launched in 2017 alone. Its portfolio also includes Topshop, Topman, Dorothy Perkins, Missguided and Next.

    “At Jabong, we continuously strive to offer the best of global fashion brands to our shoppers. Forever 21 is a pioneer and global leader in the fast fashion category and its addition will strengthen the comprehensive line of finely curated international portfolio on Jabong,” said Gunjan Soni, head of Jabong.

    Abhinav Zutshi, India business head of Forever 21, said the combined strengths of Jabong and Myntra will give the brand exposure to a major share of India’s online fashion retail market.

    “This complements our aggressive offline strategy and we are excited to herald a long association with Jabong,” he said.

    Jabong is a multi-brand fashion e-store offering some 350,000 products across footwear, apparel, jewellery and accessories.

  • Mothercare recovery hits a bump

    Mothercare recovery hits a bump

    Mothercare is in the process of a much needed turnaround strategy for its UK business that aims to bring the UK side of its proposition back to profit.

    After a reasonable first quarter result, the retailer has felt the effects of a tougher economic climate in the second, with like-for-likes dipping into negatives for the combined first half year.

    From March onwards expect to see Mothercare increase its prices, given that close to half its products are sourced in US dollars, which will likely be another blow to UK profits.

    Mothercare continues to focus on its digital business, with online sales now 40 per cent of total UK retail sales, compared to 36 per cent this time last year. However, a significant 44 per cent of online sales come from instore orders on staff iPads – which suggests consumers are visiting stores but due to limited floor space there’s poor product availability. Mothercare’s ‘online’ sales don’t look quite so impressive.

    Mothercare has other issues to contend with. While the retailer is popular for newborns, in the next couple of years, the business will need to focus on retaining these consumers with celebrity and fashion-led ranges as fast fashion retailers such as H&M, Zara and Next draw this customer base from its stores.

    International remains an area of success for Mothercare, boasting profits of £20.8 million. However, the volatile international market means the retailer must not rely on its international success to soften the losses it continues to make in the UK.

  • DLF Brands quits luxury sector

    DLF Brands quits luxury sector

    India’s DLF Brands, which runs high-street fashion brands mall Emporio in Delhi, is quitting the luxury business.

    It has just shut down two of the seven stores of US fashion brand DKNY after parting ways earlier with such brands such as Giorgio Armani, Mango, Salvatore Ferragamo and Sephora.

    “We don’t have any plans to open more DKNY stores,” says DLG Brands MD Timmy Sarna. “And we don’t want to be in the high-fashion business. It’s difficult to scale up that business because there aren’t too many locations in the country where you can sell luxury.”

    Instead, DLF Brands, the retail arm of real-estate company DLF, wants to focus on mass brands. “We have profitable businesses in Kiko, Mothercare and Sunglass Hut,” says Sarna.

    DLF Brands has bought the franchise rights of UK-based Mothercare for 15 years, and plans to launch smaller stores, even in community-based markets, selling value-added products.

    “From 109 stores at present, we want to increase the number to 300. A major part of production is happening here now, so prices will eventually come down,” Sarna says. “Apart from this, our other brands such as Sunglass Hut, Claire’s and make-up brand Kiko are doing extremely well and are profitable.”

    DLF Brands started its exit from the luxury market in 2012, quitting its joint ventures with Ferragamo and Giorgio Armani. In 2014, it shut down stores of Italian menswear brand Boggi Milano, then last year parted with LVMH’s make-up and skincare brand Sephora, which was taken over by Arvind Lifestyle Brands.

    “You can either be in the fashion business or in the mass-brand business. You cannot have your finger in too many pies,” says Sarna.

  • Weather dampens Mothercare sales

    Weather dampens Mothercare sales

    Baby care specialist retailer Mothercare has reported a reasonable set of results for its Q1 trading, with UK sales declining by 2.1 per cent, reflecting an unsuccessful battle against unseasonable weather conditions.

    UK like-for-like Mothercare sales were up by 1.2 per cent, although this represents a slight slowdown on growth, impacted by a reduction of store space.

    As Mothercare continues to focus on its turnaround, it must establish a loyal customer base, appealing to all ages through social media engagement and exemplary customer service. As part of this turnaround, Mothercare continued its refurbishment of stores this quarter, with this a key component of its modernisation plan to improve the customer shopping experience, and ultimately entice young mothers back to its stores.

    Mothercare is also working to improve its online proposition as part of its aim of becoming a ‘digitally led business’. Over the quarter, online sales grew by 6.4 per cent, while mobile now represents 84 per cent of online traffic.  Innovation of its app is proving to be highly successful, with additions to differentiate it from the mobile site, such as Baby Tunes (songs and white noise for babies), helping to create a more interactive experience.

    International exposure remains volatile, although sales were strengthened this quarter by the timing of Ramadan, which fell entirely in Q1 this year. In spite of this impressive growth, Mothercare must remain cautious in light of the UK’s decision to leave the EU, with this development likely to impact trading globally. Hedging in both the dollar and royalty receipts should limit the impact on the weakening of the pound, allowing Mothercare to see further sustained growth this financial year.

  • Odel to build Mega Mall in 3 years

    Odel to build Mega Mall in 3 years

    Sri Lanka’s Odel PLC (Odel) is aiming at upgrading its Ward Place Odel flagship store to improve quality of offerings to customers and plans to build a Mega Mall of 300,000 sq. feet adjoining the Odel flagship store along with car park amenities. Addressing shareholders at the release of the 2014 Annual Report, Chairman of Odel PLC (Odel), Ashok Pathirage said the Mall is projected to be completed within three years.

    “We intend to bring our Softlogic Brands portfolio to Odel. During the year, ‘Mothercare’ has already been promoted inside Odel stores. We continue to develop customer care to enhance and facilitate standards and to bring our retail store floor space to international standards. We will be also launching Bodyshop branded products at Odel in the Q3 of FY2015/2016,” Pathirage said.

    He noted that whilst the company serves customers through 20 stores, their new Business Model aims at smaller outlets and one Big Mall.

    “Thus, we have closed down some of our bigger outlets including Maharagama and Jaela, with other outlets currently under evaluation,” Pathirage said.

    Softlogic Holdings Plc initially acquired nearly a 45% stake in Odel for over Rs.2.7 billion and since then has gradually increased its stake to 93% of issued share capital of the company by acquiring a further 47.46% stake for over Rs.2.8 billion from Parkson Retail Asia Ltd (PRA), the Singapore-listed department store subsidiary of Parkson Holdings Bhd. The total investment in acquisition that was concluded in mid-September 2014 amounted to over Rs.5.5 billion.

    Odel acquired 99.99% of Softlogic Brands Private Ltd on 20th March 2015 for a total consideration of over Rs. 599.99 million from Softlogic Retail Pvt Ltd and Dai Nishi Securities, which are subsidiaries of Softlogic Holdings PLC.

    Analysts have outlined that the retail sales worldwide will reach US $22.492 trillion this year, and that the global retail market will see steady growth over the next few years. In 2018, worldwide retail sales are projected to increase by 5.5% to reach US $ 28.3 trillion.

    “We will continue to invest in the businesses that give us profitable returns and opportunities for capital appreciation over the next 3 – 5 years. Softlogic’s Retail operations have plans to increase island-wide expansion of retail space and our brand acquisitions are backed by careful assessments. Softlogic Retail has ambitious plans to target a total retail space of 335,000sq.ft. in three years,” Chairman Pathirage said.

  • British brands invading Philippines

    British brands invading Philippines

    Asif Ahmad, the UK ambassador to the Philippines, is one of the busiest diplomats in the country, as he leads, almost on a weekly basis, the opening of new outlets put up by dozens of British companies which are taking advantage of the rapidly growing consumer market and improved purchasing power of Filipinos.

    Ahmad, the 59-year-old diplomat who has been assigned in the Philippines since July 2013, says while several British companies have established their presence in the country for several decades now, more are expected to land in the Philippines soon.

    “We have done it in fashion.  We have done it in cars. We have done it in films and music.  The next story is eating and drinking,” says Ahmad, during the opening of the second outlet of Costa Coffee in the Philippines at Robinsons Place in Ermita, Manila.

    Costa Coffee, the leading coffee chain in the United Kingdom, is the latest British brand setting its sights on the Philippine market, which Ahmad says offers a lot of opportunities for foreign companies.

    The ambassador says the expansion of British firms in the country is a part of a deliberate effort of the London government to triple its exports to the world to 1 trillion pounds by 2020.

    Unilever, an Anglo-Dutch company, is one of the biggest distributors of consumer products in the Philippines while Royal Dutch Shell Plc. is one of the three largest petroleum players in the country.

    The last couple of years saw dozens of UK firms opening outlets or expanding their presence in the Philippines.  In November 2013, London opened its airspace to Philippine Airlines via Heathrow Airport, with the help of Ahmad.  This has triggered a faster movement of people, including investors and tourists, between the two countries.

    British financial giants HSBC, Standard & Chartered, Barclays and Pru Life UK have strong presence in the Philippines while UK companies that are expanding in the country include Pearson Plc., Ashmore Group, British American Tobacco, British Petroleum, ECR Minerals Plc., CRH Plc., Arup, Nectar Group Ltd., MacKay Green Energy Inc., Forum Energy, Pitkin Petroleum Plc., Eaton Corp. Plc. and Weir Engineering Services Ltd.

    Top British brands opening or adding outlets in the Philippines include Rolls Royce, Range Rover, Jaguar, Mini Cooper, Morgan Motors, Tesco, The Body Shop, Fitness First, Toni & Guy, Remington UK, Marks & Spencer, Debenhams, Lee Cooper, F&F, John Lewis, Burton, Reiss, Speedo, Hamleys, Burberry, Topshop, Topman, Dorothy Perkins, Mitre Sports, Berghaus, Kangaroos, Superdry, Warehouse, Clarks Shoes, Paul Smith, Mothercare, Hackett London, Lush, TM Lewin, River Island, Cath Kidston, Pepe Jeans London, Savile Row, Lyle & Scott,  Whyte & Mackay, Twinings, Diageo, Union Jack Tavern, Wolf & Fox, Chuck’s Grub, Waitrose and Yummy Organics.

    Ahmad says more brands will expand in the Philippines soon. “We have a strong presence of British brands that is gonna grow.  My government, the UK, has said that we must triple exports to 1 trillion [pounds]. My mission here is to grow three times more than before.  That is a very strong target to have,” he says.

    The UK is already the largest investor among European countries in the Philippines.  “The easy target that we have met is being the number one investor in the Philippines from the European Union. We have achieved that already,” he says.

    “In terms of trade, we have a long way to go.  If we added it both ways, it [bilateral trade] adds up to $2 billion.  We have to make it $6 billion,” says Ahmad.

    He says the UK embassy is working with the British Chamber of Commerce to help more companies navigate the Philippine market.  British investors are looking at infrastructure, public-private partnership projects, water, healthcare, education, information technology and defense sectors, he says.

    The British Chamber of Commerce is arranging more trade missions to bring more British brands in the Philippines this year to look at opportunities, given the country’s improving economy.

    “What we are seeing is that the government has more money.  The infrastructure projects are now speeding up, after a difficult start.  We are seeing people consuming more, spending money more, not just in houses and cars, but also in their lifestyle,” Ahmad says.

    Ahmad says Filipinos can afford to buy British brands.  “It [local market] has been ready for quite some time.  That’s why we have been very successful here.  If you go back, they [British companies] have been here for a long time and they are expanding still.  New ones are coming onboard.  What Costa Coffee does is something different.  It is in food and beverage segment, which has much more to offer,” he says.

    Costa Coffee opened its first outlet at Eastwood Citywalk 1 in Libis, Quezon City in June and plans to open three more branches this year at Tera Towers in Fort Bonifacio, E. Rodriguez Jr. Ave. in Quezon City and Robinsons Antipolo in Rizal.

    “We plan to open 70 Costa Coffee branches in the Philippines over the next five years,” says Costa Coffee Philippines general manager Corinne Milagan, who heads a new unit of Robinsons Retail Holdings Inc. to guide the expansion of the Costa brand in the country.

    Among those who attended the opening of the Costa Coffee branch at Robinsons Place Manila are Ahmad, Milagan, Robinsons Retail Holdings president and chief operating officer Robina Gokongwei-Pe, Costa Coffee International managing director Chris Rogers, Robinsons Land Corp. president and chief operating officer Frederick Go and Costa Coffee franchise manager for Southeast Asia and India Matt Kenley.

    RRHI formed a new company called Robinsons Gourmet Food and Beverage Inc. to operate the Costa Coffee chain in the country. Robinsons Gourmet teamed up with Whitbread Plc. of the United Kingdom to bring the British coffee brand to the Philippines.

    “The Philippines has fantastic opportunity for the Costa brand.  It brings something different to the market. A different coffee, a different environment and a great people.  And it brings a little taste of London to the Philippines,” says Rogers.

    “We have been looking forward to the next 20 to 30 years. The Philippines is an exciting place to be, because of the potential growth.  The economy is growing strongly. The consumer population is growing. There are good dynamics,” says Rogers, who joined Whitbread eight years ago.

    Rogers has been leading the international expansion of the Costa Coffee brand since July 2012.

    Robinsons Retail plans to open 70 Costa Coffee stores in the Philippines over the next five years, with an average cost of P10 million per outlet.

    Rogers says Costa Coffee has found its niche in the competitive coffee market.  “Our difference is our coffee.  We have the Mocha Italian blend.  We are very particular with the beans we choose–high-quality beans with a particular taste. The environment is also very different,” he says.

    Milagan says the Philippine coffee market is now prepared for a British brand.  She says coffee lovers, including British expatriates, were lining up hours prior to the opening of the Costa Coffee branch at Robinsons Place Manila on July 31.

    “The [coffee] market is not yet saturated. The Philippine market has matured in terms of  food and drinking preference. We are graduating now from instant coffee and we are now shifting to coffee made in a hand crafted way,” says Milagan.

    Milagan says “the Filipino taste has become discriminating, as they travel abroad.”

    Costa Coffee was founded by Italian immigrants Sergio and Bruno Costa in 1971 in Lambeth, London. The Costa brothers were known for creating their unique blend of coffee, a combination of Arabica and Robusta beans. They called it Mocha Italia, a blend that is a closely guarded secret to this day.

    The brand was acquired by Whitbread Plc. in 1995.  The UK firm continues to serve the original Mocha Italia recipe, which is slowly roasted in the Old Paradise Street Roastery in London.

    Milagan says Costa coffees are all handcrafted and espresso-based.

    Costa Coffee now has 3,000 stores in more than 30 countries. Costa employs Master Genarro Peliccia as the official coffee master who ensures that the taste remains consistent to the original blend.

    Gokongwei-Pe says Costa Coffee is the second British brand brought to the Philippines by Robinsons Retail, the first being the fashion brand Topshop.  She says her company will bring more foreign brands, depending on the performance of Costa Coffee.

    “We have to make sure this works first,” she says, adding that the outlook for the Costa brand in the Philippines is promising.

    “I believe in good luck.  I believe in good vibrations,” she says.

     

  • Mothercare takes Peoplevox partnership into Asia

    Mothercare takes Peoplevox partnership into Asia

    Baby and maternity products retailer Mothercare is implementing warehouse platform Peoplevox in Asia, following initial success with the system in its Irish business.

    The vendor’s dedicated eCommerce warehouse management system is to be implemented in Mothercare’s Singapore, Hong Kong, Macau, and Malaysia operations, with the retailer hoping to benefit from the company’s “deep functional expertise” as it develops its online presence on a global scale.

    The move comes after Mothercare announced in February that it was among a number of retailers and brands, including country fashion players Barbour and Country Attire, looking to Peoplevox’s self-proclaimed Amazon-style logistics platform to help them compete with the pure-play giant on a global scale.

    Founded by Jonathan Bellwood on the understanding that traditional warehouse management systems are not necessarily the ideal fit for eCommerce operations, Peoplevox has developed a solution that optimises pick routes, eliminating mis-picks, and effectively allows retailers to outsource their stock management processes when entering new territories.

    Elaine Khoo, general manager for eCommerce at Mothercare Singapore, commented: “Peoplevox is an eCommerce warehouse specialist, with impressive pick rates and accuracy levels.

    “We chose them for the software’s capability to support multiple inventory levels and logistics providers, which is important for us operating across different countries.”

    Other Peoplevox clients include fashion retailer Blue Inc, gifts and jewellery business Oliver Bonas and eye-care products supplier Vision Direct.

  • Worldwide gross sales drive Mothercare restoration

    Worldwide gross sales drive Mothercare restoration

    Struggling UK childrenswear idea Mothercare has reported bought worldwide gross sales and a burgeoning on-line enterprise because it recovers its mojo.

    Within the full yr to March 28, Mothercare says its pre-tax, underlying revenue rose 37 per cent to £13 million. Worldwide gross sales have been up 5.6 per cent – a good more healthy 12.four per cent on a continuing foreign money foundation – and on-line gross sales rose 18 per cent, accounting for 30 per cent of complete UK gross sales with over a 3rd of on-line orders collected in retailer and 82 per cent of on-line visitors now generated from cellular.

    UK like-for-like gross sales have been up two per cent, and gross margin stabilised, the corporate stated in its annual assertion.

    Complete UK house market gross sales have been down zero.9 per cent as an extra 31 underperforming shops have been closed. However the concentrate on increasing internationally is clearly bearing fruit: Mothercare stated complete promoting area was up 9 per cent, now numbering 1273 shops in 60 nations, with 52 new ones opened in the course of the monetary yr. Mothercare made its Korean debut, opening 4 shops.

    Chairman Alan Parker stated the yr was certainly one of “main change” for the corporate, with a brand new CEO and CFO recruited, new financing preparations entered into with its banks, an uninvited takeover supply rebuffed and a efficiently accomplished a rights difficulty.

    “I’m assured that we now have the appropriate management and plans to realize our clear potential of being a world main international retailer.”

    CEO Mark Newton-Jones stated the corporate’s worldwide enterprise has delivered progress when it comes to area, gross sales and revenue, regardless of elevated financial and overseas foreign money headwinds.

    “We’re making good progress towards all six pillars of our technique and we’ll proceed to construct from this platform within the yr forward. There’s nonetheless a lot to do and buying and selling circumstances might stay difficult, however we’ll keep singularly targeted on our imaginative and prescient of being the main international retailer for folks and younger youngsters.”

    Mothercare’s worldwide enterprise now accounts for 64 per cent of the model’s worldwide area and 62 per cent of gross sales.

    The corporate stated Asia, the place Mothercare now has 397 shops in 13 nations, continues to supply thrilling excessive progress alternatives.

    “We opened our first 4 shops in South Korea, within the final quarter of the yr. This market provides vital alternative with a rich center class, good high quality retail area and a mature on-line market. Because the finish of the yr, we’ve got exited our three way partnership in India, which not wanted our help to develop the enterprise. India now operates on a pure franchise foundation. Area was up about 17 per cent year-on-year with mid-single-digit like-for-like gross sales progress. Robust fixed foreign money gross sales progress was diluted by ongoing foreign money devaluation which resulted in excessive single-digit gross sales progress in precise foreign money.

    “Asia now has transactional web sites in China, India and Indonesia.”

    Within the yr forward, Mothercare says it plans to proceed to develop its enterprise to turn out to be digitally led by investing in its on-line platform.

    “On the similar time, in keeping with the plans we communicated final yr, we’ll modernise and refurbish 35-40 shops while closing 25-30 underperforming shops.”

  • Mothercare enters Korea

    Mothercare enters Korea

    Babywear retailer Mothercare is to launch in South Korea.

    The UK-based company has entered into a franchise agreement with Homeplus, a local supermarket chain owned by Tesco, to open retail stores and an eCommerce site.

    South Korea becomes the 17th Asian market for Mothercare.

    Four shops will initially open in Seoul, Suwon, Daejeon and Bucheon next month. Products will be sold online in a subsection of the Homeplus online store.

    “South Korea is a country we have been looking to serve for some time and we have found a local partner in Homeplus, with extensive knowledge and experience of retailing in South Korea,” said Mothercare CEO Mark Newton-Jones.

    Homeplus CEO Do Sung-hwan said Mothercare offered a “one-stop-shop specialist retailer” solution to time-poor parents and those preparing for the arrival of a child.

    When the South Korean stores open their doors, Mothercare’s reach will expand to 63 countries and its store network now exceeds 1300.