Apr 7, 2017
Mothercare ready raise prices after sterling fall
Mothercare expects to raise its prices by 3-5 per cent from the second half of this year as the effects of sterling's depreciation feed through to the shop floor. The seller of prams and other babycare goods gave some of the most precise details yet of how a retailer would respond to the rise in costs trigged by the fall in sterling since the UK voted to leave the EU. Mark Newton-Jones, chief executive, said about half of the company's products were bought in dollars, meaning the cost of these had risen by 18 per cent. In a trading update for the 11 weeks to March 25, Mothercare revealed that like-for-like sales in the UK, where the company earns two-thirds of its revenues, rose 4.5 per cent compared with a year earlier. Online sales in the UK rose 14 per cent and the group said 41 per cent of sales in its home market were now made online. Sales in its 1,338 shops abroad, which are operated through franchises, fell 2 per cent in constant currencies, but rose 15 per cent in actual currency during the quarter, compared with a year earlier.
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