Moss Bros could be a late developer

The retailer had been left in a state of post-natal depression after retail conglomerate Storehouse was left holding the baby having sold off Bhs in 2000.

By the time of Gordon’s appointment, Mothercare had been left rudderless for six months, had issued three profits warnings within a year and a disastrous warehouse move had left its supply chain in a mess.

Gordon faced cleaning up a cash crisis that led to the retailer tottering on the edge, after it failed to exploit its heritage as the leading specialist in its market.

Fast-forward five years and the winner of this year’s Retail Week Awards Speciality Retailer of the Year is hailed as a bouncing retail darling.

Today, it announced a sparkling fourth-quarter update in a period when other speciality retailers are grumbling about the consumer slowdown.

So how has Mothercare managed to nurture its customers to keep spending in tough times?

It has cleaned up its store proposition and focused on sourcing and product to address the teething problems around its clothing offer. It has successfully capitalised on its multichannel offer and been innovative, predominantly in its customer service proposition. It has also created an exceptional customer relationship-building strategy, exemplified by its social networking site Gurgle.com

And it has progressed from being a relative toddler in overseas markets to become an international market leader. Let’s not forget its successful consolidation of the market with the acquisition of The Early Learning Centre for£85 million last June.

It is a long way away from 2002, when prospective bidders circled the retailer.

At a time when Mothercare was plunging into the red – in its 2002/2003 financial year it recorded a loss of£24.8 million – Baugur snapped up a 3.5 per cent stake in the company.

However, within nine months of Gordon’s arrival he had seen them off and was projecting and achieving profits ahead of expectations. As shares rose, Baugur sold out at a profit in mid-2003.

The then little-known Gordon is now lauded for his private-equity style turnaround of the business.

This should sound familiar with another specialist retailer, which announced a slide into the red today and is being stalked by Baugur. Moss Bros should take note.

It could benefit from the private equity-style focus that Baugur could bring if it were to acquire the menswear business, but, if not, a fresh impetus and different outlook at management level is required urgently.

However, the keenest lesson to be learnt from Mothercare suggests that, once the grown-ups stop throwing their toys out of the pram, there is every chance that Moss Bros could see a rebirth.