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Mothercare’s like-for-like sales increase through full-price strategy

Mothercare has reported UK like-for-like sales were up by 1.1% for the 13 weeks to January 10, as the retailer continued to reduce its promotional activity.

Total UK sales fell by 1.9% and space in the UK was down by 4.2% on the same period last year.

Online sales increased by 16.1%, representing 31.8% of total UK sales, up from 26.9% last year. Click-and-collect increased by 10.7%, representing 36.6% of UK online orders.

The retailer for parents and young children said that gross margin rate continued to stabilise as a result of more full-price sales, lower levels of promotional activity and delaying the end-of-season Sale until Boxing Day.

International sales were up by 14.4% at constant currency and space increased by 11.5% during the period.

“Third quarter results are in line with our plan,” said chief executive Mark Newton-Jones. “Importantly, in the UK, we have continued to reduce the level of promotional activity and went into the end of season Sale on Boxing Day, with less stock and later than in recent years.

“These actions are re-establishing Mothercare as a full price retailer and in turn stabilising our margin. In international, we have seen continued strong growth from all territories, despite the economic uncertainty in some markets.

“Whilst trading conditions remain challenging, we are continuing to make good progress on our strategic plan. Our vision is clear - to be the leading global retailer for parents and young children.”

Mothercare has 180 stores and 20 Early Learning Centre stores in the UK, and 904 Mothercare stores and 420 Early

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