Mothercare plans to extend its price match guarantee across more key lines after the tactic helped contribute to a 5% rise in like-for-like sales in December.
However, the maternity and babywear chain’s executive chairman Alan Parker said that, while price matching had positively influenced like-for-likes, this and a markdown to revive flagging sales in October and November had hit margins.
Margin is predicted to be down by 450 to 550 basis points in its current financial year.
The retailer said a short-term hit would be conceded to maintain market share.
Parker said: “Mothercare had let its prices drift too high. We’re improving value across our range and will push it further, across more lines.”
Mothercare widened out its price match to its top 50 lines and advertised the promotion prominently in-store and online in November.