Losses have expanded at Mothercare!
The British infantwear retailer has seen its losses before tax broaden from £8.5 million to £21.5 million for the year ended 27 March 2021.
The losses have been majorly due to pandemic-induced store closures that badly impacted the retailer’s international franchise partners.
The adjusted operating profit for the retailer jumped year-on-year by a massive 67 per cent to £200,000. Mothercare saw its yearly turnover fall by 47.9 per cent in the said period.
While around 80 per cent of Mothercare’s franchised stores have reopened, the trade continues to be challenging for the retailer especially in countries like Russia, India, Malaysia and Indonesia, where pandemic is still wreaking its havoc.
The year saw the babywear retailer witness a 41.9 per cent rise in its online sales to clock £44.4 million, with the global retail sales falling by 33.8 per cent to £358.6 million. However, online sales weren’t enough to offset the impact of store closures.
It’s been tough last few years for the retailer. Back in 2019, Mothercare had put its UK business into administration with all its 79 stores shutting down.
Founded in 1961, Mothercare specialises in apparels and other products for expectant mothers and, in general, merchandise for kids up to eight years of age.