Analysis: Mothercare takes baby steps towards revival

The retailer’s revelation that it is to shed a further 110 stores as it aims to stop the rot in the UK has been well received by most observers who acknowledge its hefty store network - and accompanying hefty overheads – is unnecessary.

The move will leave the retailer with 200 stores, all of which are profitable according to Parker.

The number of stores a retailer needs to have national coverage in a multichannel age has been a common debate over the past two years. Much-quoted research from CBRE found that store groups can access 50% of the UK population with just 90 shops, down from 200 in the seventies.

Parker says even with its trimmed down portfolio, the UK population should be within a thirty minute journey of a Mothercare store.

However, cutting costs is just part of the maternity retailer’s problem. It needs to reconnect with its customer.

90% of pregnant women go to a Mothercare store however it’s simply not converting that phenomenal footfall into sales.

Despite its remarkable brand awareness, the retailer is clearly not offering would-be mums value for money.  It has struggled to compete on price with online players such as Amazon and Kiddicare, not to mention the grocers, and its product do not carry the same perception of quality as upmarket rival Mamas and Papas.

However, Parker has come out fighting and had already ramped up its price matching on products.

He says the retailer’s buying operation will be improved and will become “best in class” which inevitably means harder negotiation to bring cheaper prices to store.

That’s a good start, but the retailer needs to find a true point of difference from supermarkets and online stores if it is to return to the much-loved brand it once was.

Incoming boss Simon Calver must focus on this if he is to revitalise Mothercare’s fortunes in the UK.