Mothercare has reported UK like-for-like sales decline of 2.8 per cent, impacted by reduced store consumer footfall during the 12-week period to 24 March 2018.

A trading update pointed out that online sales during the period represented 49 per cent of UK sales, bringing full year to 43 per cent. Online sales growth was 2.1 per cent, with website sales growth of 7.2 per cent.

The retailer for parents and young children referred to continued progress with its “store rationalisation programme”, which lead to total UK sales 5.6 per cent lower than last year. Retail space at the end of the quarter reduced as planned by 10.7 per cent to 1.3m square foot in 137 stores.

Chief executive David Wood stated that the UK retail trading environment remained relatively muted in the quarter, with a continuing trend of lower footfall in stores, though there was an encouraging return to growth online.

“My immediate priority is to ensure Mothercare is put back on a sound financial footing and to improve its financial performance,” he said. “We continue to make good progress in reducing the size of our UK store estate in response to changing consumer preferences and in reducing our central cost base, but our central focus must be customers and their experience, securing Mothercare's reputation as the number one specialist for parents.”

Addressing reports of the company considering a company voluntary arrangement, Wood said Mothercare remains in “constructive dialogue” with financing partners with respect to needs for 2019 and beyond.

“We continue to explore additional sources of financing to support and maintain the momentum of our transformation programme. All of these discussions are on-going and further updates will be given as appropriate.”

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