Tesco might turn Mothercare into 'destination stores'
Retail rumour has it that Tesco is thinking of buying Mothercare and turning some of its stores into ‘out-of-town family friendly destinations.’ (Because that’s just what the world needs.)
If they do make a bid, it will come as a blow to the beleaguered Mothercare, who were hoping to turn around their dismal fortunes by closing some stores and introducing new value ranges. But shares in Mothercare have dropped by 30% since the new year and UK sales have fallen by 9.9%.
Having said that, Tesco isn’t exactly doing brilliantly, with a 2.4% slump in like-for-like sales over Christmas. But the idea of ‘destination stores’ - which tie in with their purchase of Harris and Hoole and Giraffe - is obviously the thing they reckon will inject a bit more pizzazz into the business.
Tesco have also been ploughing money into convenience stores in an attempt to move away from hypermarket shopping. They’ve already scrapped 100 major store developments - because why would people stand in an aircraft hangar 10 miles out of town to look at stuff you can just buy online?
But will soft play, coffee and sandwiches give them the boost they need? Are we really that hard up for entertainment that we’ll drag the kids to Tesco - for FUN? Frankly, I would rather visit the seventh circle of hell than a family friendly out-of-town retail destination owned by Britain's most annoying supermarket, but each to their own.
Whatever way you look at it, though, it all sounds suspiciously like Tesco are getting a bit desperate...