Twitter
Facebook
Linked In
RSS
Login or Register
New to InternetRetailing?
Register Now
Internet Retailing
IREU Top500 The Customer Report: 2018

IREU Top500 The Customer Report: 2018

You are in: > Home > Research > IRUK

This is your 1 complimentary article for this month

Become a member for unlimited and immediate access.


Register
Already a member? Log in here

Mobile now accounts for 61% of Mothercare online sales

Linked InTwitterFacebookeCard
Mobile now accounts for 61% of Mothercare online sales
Mobile now accounts for 61% of Mothercare online sales
Mothercare had some interesting things to say about the way its customers are buying across sales channels in a first quarter update out this week. Here are our top-level findings.

1. Online sales are still growing, even as total sales fall

UK online sales grew by 6.4% in the first quarter of the year, compared to the same time last year. But that's not fully compensating for closed stores: total sales were down by 2.1% in the 15 weeks to July 9, while floor space fell by 4.8%. Ecommerce now accounts for 35.5% of total UK sales - which is up from 32.7% in its latest full year. Chief executive Mark Newton-Jones said the retailer had "continued to improve our customers' shopping experience both instore and online".

2. Mobile is driving online growth

Mobile is fast becoming the main online channel for Mothercare. Some 84% of online traffic to the Mothercare site comes via mobile, while the channel also accounts for 61% of online sales.

3. Mothercare is likely to benefit from a weak pound, in the wake of the referendum

In its international business, Mothercare saw sales up by 3.9% during the quarter, on a constant currency basis. But calculated in the light of actual exchange rates, overseas sales were up by 5.1%, which was especially noted in the Middle East and Asia.

However, Newton-Jones said: "We have not seen any immediate consumer reaction to the Brexit vote, but it is too early to call as we went into the end-of-season sale early. We hedge both dollar purchases and royalty receipts and we expect limited impact on our financial results this year."

Background

Mothercare, an Elite retailer in IRUK Top500 research, has been working to turn around the business, rebuilding it around digital, since 2012. Its first three-year turnaround programme was launched in 2012, ahead of the arrival of then-incoming chief executive Simon Calver, at a time when online and offline sales were falling, but international sales were growing strongly.

In 2014 Calver was replaced by Mark Newton-Jones, previously of Shop Direct and Next, who that year unveiled a plan to raise £100m from shareholders for a new transformation plan to become a digital-first retailer. Full-year results unveiled earlier this year showed the company back in profit for the first time in five years, thanks to a strategy that has seen sales move online rapidly, with mobile standing out.

Linked InTwitterFacebookeCard

Become a Member

Create your own public-facing profile
Gain access to all Top500 research
Personalise your experience on IR.net
Internet Retailing
We are the magazine, portal and research source for European ecommerce and multichannel retail, hosting the board-level conversation for retailers, pureplays and brands across all of our platforms. Join the conversation.

© InternetRetailing Media

Latest Tweet

Internet Retailing
Tamebay
eDelivery
Twitter
Facebook
Linked In
Youtube
RSS
RSS
Youtube
Google
Linked In
Facebook
Twitter