It was once the one-stop shop for all things baby-related, but Mothercare's 79 UK stores are not profitable and 2,500 jobs are at risk. Mothercare said its 79 UK stores were "not capable" of achieving a sufficient level of profitability and that so far it had failed to find a buyer. It said its stores would continue to trade as normal for the time being. Analysts said Mothercare had been slow to adapt to competition from rivals and the switch to online retailing.The firm said the decision to appoint administrators was "a necessary step in the restructuring and refinancing" of the group. In the financial year to March 2019, Mothercare's international business generated profits of £28.3m, whereas the UK retail operations lost £36.3m. In its heyday, Mothercare had hundreds of stores. It was the go-to place for new parents. But it failed to keep up with our changing shopping habits. Mothercare's UK arm has been loss-making for years. One big reason is there's so much more competition these days. From Zara and H&M to the major supermarkets, there are no shortages of places to buy children's clothing and often at cheaper prices. And then there's online, with the likes of Amazon who are able to deliver basic kit to your doorstep within hours of ordering. It has all eaten into Mothercare's market share. Truth is, this is a business that's been losing money for a very long time. Mothercare ran out of time and money to try to revive its fortunes.
