Online sales comfort Mothercare

Online sales rise 17 per cent at Mothercare

Strong online sales have helped offset what could have been a disappointing year for high street giant Mothercare.

The retailer reported a rise of 17 per cent in online revenue and sales at stores where customers can order via the net grew 21 per cent. But overall growth was just 1.6 per cent.

Sales from the internet and web-enabled stores accounted for £47.8m and has significant potential growth for the company, says Mothercare chief executive Ben Gordon.

The firm has already invested in an online platform, launched last year, the extension of the web in-store facility and upgraded supply chain operations.

‘With a strong platform in place we are focussing on growth and are confident that the business will continue to develop strongly during the coming year,’ said Gordon.

Mothercare will exploit all internet retail opportunities in the year ahead, he says.

The firm's focus on IT follows acknowledgement that previous under-investment was a factor in poor sales (Computing, 22 September 2004). In the past three years, it has upgraded its tills and introduced analytics, financial management software, e-learning and an electronic gift card scheme.

Mothercare also bought the toy shop chain Early Learning Centre last year. But plans to merge the two firms' IT systems are to wait until after this Christmas rush.

Overall, UK sales rose just one per cent to £411.4m, with restructuring costs and an accounting hit on financial liabilities dragging the results down.