Deathwatch: Mothercare's woes continue
However, the baby shop didn't account for everyone being able to find cheaper prices online and soon, they found themselves in a quandary. After closing numerous stores and slashing their prices, it seems to be all for nothing as poor Christmas sales meant they'd missed their annual profit forecasts.
The company, in their defence, are in the middle of a three-year turnaround plan in a bid to return to profitability and they think it is too early to make any predictions about when they'll be back in the black. It looks like they're going to have to do something drastic to get people through their doors again (for instance, remembering that all the other shops don't operate Sunday closing like they do).
"I think it's too early to say the actual timing of the U.K. return to profitability," said Chief Financial Officer Matthew Smith. "We always knew it was a long term turnaround plan... we need to look at the timing again, I think, but our focus is to deliver U.K. profitability and to grow internationally."
Thanks to drab sales, shares in Mothercare have predictably slumped. Could this be the end for another famous name on the High Street?
TOPICS: High Street News