Mothercare continues cost-cutting rescue plan

Struggling retailer Mothercare says its turnaround strategy is  continuing to yield results, by cutting its losses and slowing down  its fall in sales.The company made a loss of 0.6 million pounds in the six months to  October 13, down from 4.4

million pounds for the same period a year  ago.

Sales measured on a like-for-like basis are still falling, but the  decline, of 3.4 per cent, is half that of a year ago.

According tot the BBC, Mothercare, which runs 1,400 stores including  280 in the UK, is six months into a three-year improvement plan,  closed 25 Early Learning Centres and six Mothercare stores during the  first half of the year and plans to bring the total number of store  closures for the year to 50.

It also said it had lowered its prices on some ranges in response to  customers, who had told the company it needed to offer better value.

Offsetting that move, Mothercare has introduced a number of "premium"  ranges, including one in collaboration with Jools Oliver, Jamie  Oliver's wife.

The company's chief executive, Simon Calver, said its plans were  paying off: "Our results show early signs of progress despite the  challenging trading conditions in the UK and the eurozone."

The company said it was doing well in Turkey and Eastern Europe. It is  also expanding in Asia Pacific, the Middle East and Africa.