Ailing Mothercare ‘failed to stand out’ in highly competitive space

Mothercare’s dwindling authority as a specialist is to blame for its troubles, according to GlobalData

The baby goods retailer has said it plans to call in administrators to its UK business, putting 2,500 jobs at risk. This comes as no surprise following its company voluntary arrangement (CVA) in 2018, profit warning in July this year and its prolonged poor UK performance, states Sofie Willmott, Lead Retail Analyst at GlobalData.

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“The retailer has failed to stand out as a specialist destination with new parents turning to competitors that offer a better proposition either in terms of low prices, convenience or service, such as Amazon and John Lewis,” she comments.

“Its strategy to cull store numbers in recent years and transfer sales online has proved unsuccessful, with digital sales declining as its online offer failed to encourage purchases,” Willmott concludes.

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