Mothercare Direct Sales Climb 11.6%

Mother and baby retailer Mothercare has increased sales ordered over the internet as it restructures the business away from its UK store portfolio.

The company increased what it calls Direct in Home sales - orders made by customers at home, primarily through the internet - by 11.6 per cent to £48 million in the 28 weeks to October 12. Orders made via its instore internet terminals increased 4.1 per cent to £18.7 million in the period.

The two channels together account for 28 per cent of total UK sales and rising. Total UK sales declined 7.5 per cent to £238.4 million.

Mothercare said its mobile app has helped drive online traffic and 33 per cent of all visits are now from mobile devices. It also introduced free click and collect to all Mothercare stores from May and has since added all its Early Learning Centre stores. 

It said click and collect accounts for 36 per cent of all its Direct in Home sales. 'Online customers spend twice as much as our store-only customers and multichannel customers spend twice as much again,' the company said.

Mothercare is focusing efforts on building online sales and growing overseas as it cuts UK stores, which are still loss-making. International sales rose 13 per cent to £399.3 million. The company made an overall profit in the first-half, excluding exceptional items, for the first time since 2011.

Chief executive Simonn Calver said the UK market 'remains subdued'.

However, Mothercare is currently taking its online site to more than 30 international markets which could also receive additional Early Learning Centre web sites. Many, such as the Ukraine, launched earlier this year, will be run by franchise operators.