Retailer’s Transformation Continues Amid Store Closures and Declining Sales

  • 8.8% drop in like-for-like sales for Mothercare in Q4
  • International retail sales down by 4.9% in constant currency and 4.5% in actual currency
  • UK store closure programme completed ahead of schedule, now operating with 80 stores (down from 137)
  • CEO Mark Newton-Jones thanks longstanding colleagues for their professionalism during difficult process

Embattled retailer Mothercare has reported an 8.8% drop in like-for-like sales for the 12 week period to 30 March 2019, which is an improvement from previous quarters. The decline was driven by clearance stock volumes in closure stores that diluted gross margins but cleared all inventory in these stores. International retail sales were down 4.9% in constant currency and 4.5% in actual currency. Mothercare successfully completed its UK store closure programme ahead of schedule, closing 40 stores in the past three months, reducing its UK portfolio to 80 stores from 137 in the prior year. CEO Mark Newton-Jones acknowledged the difficult process but expressed gratitude for colleagues’ professionalism during the transition. He stated that the disruption from organizational changes and store closures is largely behind them, and they remain on track to meet full-year expectations.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Mothercare’s sales performance, store closures, and the CEO’s comments without any sensationalism or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about Mothercare’s sales performance and store closure program, as well as the CEO’s comments on the situation. It does not contain any irrelevant or misleading information, and it stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: UK retail and related stocks
Financial Rating Justification: The article discusses the financial performance of Mothercare, a UK-based retailer, and its impact on sales and store closures which can affect the company’s stock price and other retail companies in the same sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk