It is just been announced by the company Mothercare that they are going to be closing down over 100 stores in the next three years in order to boost profits in the UK. This move is going to threaten over 700 jobs and it is going to allow the company to focus on its most profitable locations.
Recent figures from the company have shown that its sales have continued to decline and experts are speculating that by 2015 the shutting down of the stores would help the company increase their profits by around £13 million.
The company also announced that they are going to be reducing costs at the head office by cutting the payroll by over 15 percent. It is expected that around 90 people are going to lose their jobs at the head office in addition to the people who will lose their jobs as a result of the 100 stores shutting down. The chairman of the company stated that this is a move by Mothercare in order to make them a more competitive and lean business.
The chairman, Mr Alan Parker, has commented, “Mothercare has a strong presence internationally but we need to focus on our business at home and this is going to involve a drive to become more profitable. We need to focus on our most profitable locations over the next three years and unfortunately this means shutting down many of our stores.”
The company have also been focusing on developing their online presence and a lot of this is occurring after the previous head of the online company, Lovefilm, took over leadership of the parenting company. Over the next few years the company are going to be working to integrate their high-street presence with that which can be found on the Internet.