Mothercare plans to upgrade its point of sale and web ordering systems as part of a £15m technology overhaul.

The retailer has signed a deal with BT Expedite to install and manage the new hardware and software, sales analytic tools and chip-and-Pin technology in 232 stores by spring 2006.

The centralised web ordering system is also being upgraded, so customers visiting smaller stores with less of a product range can order from Mothercare's full catalogue, using web-based tills.

'Our systems were about 15 years old and the hardware itself had got to a point where it was breaking down far too often,' said Kevin O?Brien, IT divisional director at Mothercare.

The system will reduce transaction times and, as information is held centrally, customers can contact any store to amend or update orders.

'What we now have is a solution that allows every single till to become web enabled,' said O'Brien. 'It will add to the sales in some of our smaller stores.'

BT Expedite will install IBM tills, with chip-and-PIN software and readers to reduce credit card fraud.

'The system will also help us track any fraudulent activity and training that needs to be introduced,' said O'Brien.

New tills will also include electronic training programmes, so cashiers can deal with new situations without having to consult paper manuals.

'The system not only allows us to improve customer service, but also gives us the ability to view trading and sales information in real time, so we can quickly assess the popularity of new products and become a more agile business,' he said.

Earlier this year, Mothercare chief executive Ben Gordon blamed lack of investment in IT as a factor in the firm's under-performance.

A new merchandise planning system was introduced in April and is expected to bring savings when Mothercare's Spring/Summer 2005 collection is unveiled.

'As indicated at our interim results in November, we expect that the investment in these systems, together with further enhancements to central and distribution systems, will be some £15m over the three years of the turnaround programme,' said Gordon.