Marketing and Business Analysis of Mothercare

Company History

Mothercare is a retailer of specialist of products for mother-to-is, the babies and the children until the age of eight. Mothercare opened its first warehouse in 1961 in Surrey. The business was centered initially in pushchairs, the furniture of the quarter of children and the clothes of the maternity, but it extended its range later to include the clothes for the children until the age of five and more ahead until the age of eight. Now it offers an ample range of the maternity and the homemade clothes of the children, furniture and furniture, bed, feeding, bathing, equipment of the route and the toys with its operations to by minor in the United Kingdom, and also it works internationally with licenses in Europe, the Middle East, Africa and the Far East under mark of “Mothercare”.

The business began its business of order by mail in 1962. In 1972, Mothercare first felt well to a public company and in Mothercare 1982 combined with the chain of the habitat of retailers to form plc of Mothercare of the habitat. In 1984, Mothercare began to extend itself internationally with entering adjustments of the license with the select partners in chosen countries. In 1986, plc of Mothercare of the habitat combined with the British home stores plc. During years 90 they rationalized the combined group of forces. 2000, Mothercare became the unique trade name and the name of the company that maintained was changed plc of Mothercare.

In June of 2007, the group acquired the limited possessions, the owner of the warehouses of Chelsea of the early trade name of the center that learned (ELC).

ELC was founded on 1974 originally like the toys of offer and books of a business of order by mail with the educative content. The first store to by ELC minor was opened more in the reading in front of he himself year. In 1985, ELC was acquired by plc of Juan Menzies who continued extending the state and ELC became a well-known affluent trade name of the main street. In September of 2001, ELC was the subject of a purchase of participation of the management, during which aerodinamizado ELC their not-beneficial operations, categories exits of the product and warehouses and grew their operation of sourcing in Asia., a social site of the establishment of a network for the new mothers was sent in 2007.

Strategic Corporate Development History


The aim is to construct to the group of Mothercare in the main retailer of specialist of the world of parenting and products of the children. The acquisition of the center that learned early in June of 2007 was a dominant step in the development of this subject. The aspirations of the group will be reached to traverse:

  • Developing own-it marks of innovating factory and exciting the products under the Mothercare and to learn early center trade names;
  • The best one of masters of the class and the specialization of our personnel; and
  • The guessed right delivery of the strategy of the growth needed down.

Growth strategy

The strategy of the growth of the group of Mothercare is centered in four dominant handles that give the potential of the Mothercare and of the early trade names of the center that learn.

  • Maximization of synergies of the integration of the center that learns early;
  • reconstructing the combined Mothercare and to learn early it centers the characteristic list;
  • Continuation of the fast growth of direct; and
  • leading the international reach of the Mothercare and to learn early it centers the trade names
  • Synergies of the ELC integration

Single synergic greater of the acquisition of the center that learns early is the optimization of the combined BRITISH list of the warehouse. A significant element of this is the insertion of the center that learns early in dominant Mothercare outside warehouses of the city and greater warehouses of the main street. One hopes that 80 early fillings of the center that learn negotiate in the warehouses of Mothercare by Christmas 2008.

Second synergic of integration is to develop the early trade name of the center that learns internationally through the existing networks of franchisee of Mothercare.

Third synergic of the acquisition is growing the margin by the efficient operation of our offices of sourcing. With the acquisition of the center that learned early we acquired an office outpost of sourcing based on Hong Kong and have invested already in this facility, that is responsible now directly for sourcing the toys of all the group.

Fourth synergic is the integration of the operations of several channels through the two trade names.

Property portfolio

The second handle of the growth of Mothercare is the strategic one reconstructs of the list of combined BRITISH characteristic. Inserting warehouses of the early center that learn within Mothercare in their own aids right size the chain of Mothercare; taking the best sites from both trade names, and putting a commander in execution it reconstructs of the combined list of the warehouse.

The list of the main street also will be treated consolidating the two trade names in a warehouse in where we have a Mothercare and a center that learns early in the same main or Next Street, creating a more beneficial warehouse with two trade names in a location.

Growth of direct

The growth of the direct will grows in line increasing range of accessible product. Mothercare now has on 350 types of pushchair in line and 300 accessible seats of car. The extension of the success of our direct business in our international markets is being progressed.

The center for the center that learns early is in the optimization of the Web site and the introduction of fabric-in-stores.


The fourth handle in our strategy of the growth is globalization of our two trade names.

The international business will grow with the construction like-for-like the sales, having opened new warehouses in existing countries and opening new warehouses in new countries.

With the center that learns early there is an opportunity to quickly grow the global presence of the trade name with leveraging the existing network of franchisee of Mothercare.

The second handle of the growth of Mothercare is the strategic one reconstructs of the list of combined characteristic.

. The acquisition of the center that early learned also has given us an opportunity significant to integrate and to optimize the combined lists of characteristic who take the best sites from both trade names and we is in course to put a commander in execution reconstruct of the combined list of the warehouse that we announced at the time of acquisition.

Also rightsizing the list of the warehouse of Mothercare with resisting (closing a warehouse and opening a smaller warehouse in the same city) and downsizing (that a warehouse makes existing smaller) to lead sales by square foot. This strategy has been guessed right in the reduction of the operating expenses, particularly rent, whereas it conserves to the extensive majority of sales. Now we have made ten right sizes in Mothercare and the economy is forcing.

Now we have recovered 16 of our warehouses of towards be-of-city with our new format of Mothercare and all are being made well. The greatest warehouses now contain the home and route of Mothercare, clothes of Mothercare, the early toys of the center that learn, the shoes of Clarks and a store of the photo, creating a true destination parenting. Now we glided to roll towards it go this format to a total of 40 warehouses by the means the next year.

We are also in course of optimization of our list of the main street consolidating the two trade names in a warehouse in where we have a Mothercare and center that learns early in the same main or Next Street, creating a more beneficial warehouse with two trade names in a location.

Whereas the synchronization of the activity of the characteristic is to a certain uncertain degree, we hoped that all this activity is finished before 2009 end. The result of all this work will be a list transformed of the warehouse of the group into the United Kingdom that focuses more towards centers parenting of towards be-of-city.

The exceptional costs of this exercise have been recognized like appropriate in the cost of sales, administrative costs or loss in the disposition of the interests of the characteristic. We considered annualized advantages of this characteristic we reconstructed to ascend to £5.0 million including depreciation and anticipated these we will begin to affect the declaration of rent in 2009/10.

Growth of Direct

The direct business by directs in home and directs in warehouse has been fast these last years and total the direct sales promote to £85.5 million east year, a growth of 78.9 percents. We are increasing our ranges constantly in line and now we have them on 400 types of in line pushchair accessible and 150 seats of car in line, easily the greatest selection available in the United Kingdom.

Now we are extending ranges of the clothes and other parts of the home and traveled option of accessible increase, in line later for our clients. Also we are considering ways to extend the success of our direct business in our international markets.

A dominant conductor of the direct growth of Mothercare these last years has been our fabric-allowed strategy of the warehouse, to where each Mothercare has the capacity to in line request any accessible thing in our Web site, for the delivery to the home.

Current strategic situation

Plc of Mothercare (Mothercare) is a based retailer of specialist BRITISH of products for mother-to-is and the children until the age of eight. The company offers a variety of maternity and the products of the children for which plc of Mothercare (Mothercare) is a retailer of specialist based BRITISH of products mother-to-are and the children until the age of eight. The company offers a variety of maternity and the homemade products of the children who include the clothes, the feeding, to bathe, furniture, furniture, the equipment of the route and the toys through its distributors to by minor through country. These products are put under two trade names to by minor that is to say, Mothercare and center that learns early. The main subsidiary of operation of the limited company included of BRITISH and Chelsea de Mothercare store the limited possessions. The company works 1,014 warehouses, including 609 Mothercare and the center that learns early stores outside the Kingdom United in 50 countries through world.

The 24 dominant recent progresses Feb of 2010 of plc of Mothercare: Mothercare obtains the approval of the government for company at risk shared with the 9 DLF Feb of 2010: Mothercare and shippers to create the the 18 line Nov of 2009 of the clothes of the new

children: Mothercare reveals benefits and the strategy of the east characteristic comprehensive profile of the SWOT of plc of Mothercare provides a deepened strategic analysis to him of the businesses and the operations of the company. The profile has been compiled by Global Data to bring you to a clear and impartial Vista of the dominant forces of the company and weaknesses and the potential opportunities and threats. The aids of the profile you formulate the strategies that increase their business allowing of understanding their partners, clients and competitors him better.

The profile contains the critical information of the company including,

  • Description of the business – a detailed description of the operations of the company and the divisions of the business.
  • Corporative Strategy – summarization of the analyst of the strategy of business of the company.
  • Analysis of the SWOT – a detailed analysis of the forces, the weakness, the opportunities and the threats of the company.
  • History of the company – progression of the associated dominant events to the company.
  • Important Products and services – an important product list, services and trade names of the company.
  • Competing dominant – a list of the dominant competitors to the company.
  • Dominant Employees – a list of the dominant executives of the company.
  • Executive Biographies – a brief summary history of use of ejecutivos’.
  • Dominant operational Heads – a list of departamentos/de the functions of the key of the title of the personnel.
  • Important Locations and subsidiary – one lists and details of the contact of the dominant and subsidiary locations of the company.
  • The company’s core strengths and weaknesses and areas of development or decline are analyzed and presented in the profile objectively. Recent developments in the company covered in the profile help you track important events.

Equip yourself with information that enables you to sharpen your strategies and transform your operations profitably.

– Opportunities that the company can explore and exploit are sized up and its growth potential assessed in the profile. Competitive and/or technological threats are highlighted.

Scout for potential investments and acquisition targets, with detailed insight into the companies’ strategic, financial and operational performance.

– Financial ratio presented for major public companies in the profile include the revenue trends, profitability, growth, margins and returns, liquidity and leverage, financial position and efficiency ratios.

– Gain key insights into the company for academic or business research.

– Key elements such as SWOT analysis, corporate strategy and financial ratios and charts are incorporated in the profile to assist your academic or business research needs.


Mothercare plc (Mothercare) is one UK based specialist that dealers of products for fostra-till – is and children up to the age of eight. The company offers a variation of maternity, and children’s products, that includes that baklava, mating that swims, furniture, home – pieces of furniture and inventories, equipment travels and toys up to and including its – levying over the country. These products market stem carcasses during two as the retailing bran marker namely, Mothercare, and to learn for early type centres. Carried out headmaster the operational subsidiaries that are consisted of off limited Mothercare UK and limited Chelsea miscellaneous trade holdings. The company functions 1.014 miscellaneous trade, including 609 Mothercare, and to learn for early type centers miscellaneous trade outside UKEN in 50 countries over the world.

This extensive PLUGGHÄST profiler of Mothercare plc gives you an in-depth strategic analysis of carried out businesses and functions. Profile era has been put together of global computer for to come with to you a clear, and a prejudice free views of carried out they key – strength and the weakness and the potential occasions and the threats. The profile era help formulates you strategies that increase your business, through making possible yourself in order to understand that your partners, customers and competitors improve.

The international match that fourteen uses pressure this spring growth strategy, the globalization is of our two bran marker. The international match has continued in order to grow quickly this year with total – franchiseereor up 42.2 percents, and underlying Gila for- to like sellers up 12.0 per cents during the year was opened 77 new koncessiondiversehandel (51 Mothercare and to learn for early type 26 centers) and to come with us in end sum to 494 miscellaneous trade on the year completes outside UKEN (379 Mothercare miscellaneous hand electrical and to learn for early type 115 centers miscellaneous hand electrical). Mothercare and for early type that faith centers

is now present in 48 countries outside UKEN. We will continues in order to build the international match business up to and including growing Gila for- likes rear that opens new miscellaneous trade in existed nation and opens new miscellaneous trade in new countries. The at the end the month opened plans we ours 50th stocks in Saudi Arabia and in order to broaden striking spring presence in Turkey and Russia where we have currently 30 and 25 miscellaneous trade respective. In India, we were have, has plans in order to open 100 miscellaneous trade, ourselves already opened 20 miscellaneous trade in the at the end the two years in eight towns, and the capacity has exceeded our expectations. We also announced recently our first, in China, we be expect to open our first two miscellaneous trade in this important market stem imminent. In faith for early type centre where is an occasion to grow the fast brand’s global presence up to and including using it existed Mothercare franchisee links contact, and we are operable with ours franchisee partners to develop plans for faith for early type centers in the countries that Mothercare acts in, but faith for early type does not centre. We plan in order to open at least 100 new foreign miscellaneous trades this year over the magnified group.

Corporate responsibility

The determination and dedication of employees in the business in the front, and all this process, the necessary Ajarn brand each corporations use has the responsibility (cr) program in the first time the ELC of, which. ELC of cr the head of the group has been appointed the head of the responsibility of the Company in September, with the corner, cr, responsible for the business administration as well as in the mothercare Ltd. (0) The Company Group Secretary with the management and regulations of the group Bank from the brand and the group, which was the duty and affiliated companies of all for the last month cr Program during last year, independent experts have been appointed to look at all form of the group of business and the responsible for these help to the study in the case base set goals and objectives the appropriate in the business together, and the review will be reflected in this section, the details of the acts of us in this year, information for the educational environmental impact of the group and plans for future, there were four in our responsibility, which is below This figure shows vividly and four, the interconnection target group and public policy of good corporate governance and the settings for the news reports of us, and the program cr.

Responsible sourcing: : Making sure that our jets and partners – particularly those that we bought of directly – they deal to people with respect, they offer decent conditions of work and they pay the attention to environmental editions. Making sure we are a right and honest company with that to make the business that provides products of safe quality, good.

Environment: Understanding and handling the impact in the atmosphere – the track of the coal of our warehouses, warehouses and vehicles, the sweepings that we arrange and the packed one of products we sell. Also it demands offering of an option of the products that have environmental advantages to our clients.

Community: It includes our commission to the corporative citizenship with charities and the activities of support of the community that affect our personnel, clients and people in our chain of source.

Our people: To also treat our enough personnel and, the investment in them and making sure of each one can become and contribute. This also makes sure that we work our business to assure to us as soon as is practicable a safe atmosphere for our personnel and clients with the adoption of the constant policies of health and security.


Most of the environmental track of the group comes from warehouses that provide in the United and world-wide Kingdom with products and of the operation of the warehouses they themselves. All the United Kingdom and some products destined for warehouses of our partners of the license los’ happen with one of three warehouses in the United Kingdom – some directly given through the jets but some concerned by us and requiring transport of the wharf in where they arrive. In the warehouses they are classified and they are transported possible to our warehouses. Some products directly give to homes of the clients los’ who follow an order in-store or in the Internet. The more important environmental aspects are therefore:

  • warehouses, using energy and producing the sweepings;
  • warehouses, using energy and producing again the sweepings;
  • it transports the fleets, bringing products from the wharves to the warehouses, from the warehouses to the warehouses or homes of the clients los’;
  • the products, and the materials did them; and
  • packed and other materials in bulk.

The energy and the emissions of the coal of our warehouses are according to the indications of the table. These have calculated using a mixture of real data (where we have it) and estimations based on figures of the previous-year. All the warehouses of Mothercare have systems of management of the energy, that allow the control of the consumición. The controls all of the heating and the illumination settle down and they are handled centrally (with a certain degree of local flexibility to allow the personnel to maintain an atmosphere comfortable). The illumination is extinguished at night, commutation in partially when the personnel completely enters the warehouse and moments before the warehouse is opened. All the new warehouses are specified at the high levels of the energy efficiency. In ELC with its list of smaller warehouses, encouraging to the approach it has been traditionally different with the personnel who is found out and reduces the energy consumption. In order to support this, ELC undertook an east test year with plan of global action of “” investigating the possible savings in the average warehouse. The objective is to combine the best one of both systems – taking the messages from the knowledge of the energy of ELC in Mothercare, and extending the system of management of the energy from Mothercare to the ELC warehouses. Much of the sweepings of warehouses is the product packed one cleared (e.g. the boxes or the external purses of the clothes) needed to surely obtain the product in the warehouse. This is gathered everything by the licensed contractors regulated and something is recycle. The plan is to approach this of two ways: cutting the sweepings that reaches each warehouse reducing the transit that it packs and that increases to the amount the group recycle at the moment.


The community and the charitable implication are centered in the foundation of Mothercare, that is the main vehicle for the donations. The foundation is an independent charity, presided over by Karren Brady, with the drawn additional administrators of the board of Mothercare (our president, CEO, company secretary). Their charitable objectives league together of near the interests of our clients and personnel:

  • to assure good the health and well-being momia-to-is,
  • new momias and its children;
  • special necessities of the baby-care and premature births; and
  • other referring initiatives parenting to well-being of the family.

The foundation has east year centered in a significant donation to the well-being of the charity of women, with supported others in an inferior degree. Discreet bottoms available of the marks of the foundation both for Mothercare group employees: The bottom of the president is an annual allocation donated after a competition between the personnel of Mothercare to propose cause deserving or of the inspiration. Bottom of the ones in charge of an area el’ is available and responds to requests of the local charities made to the ones in charge of the area of the group.

In 2007/08 £100,000 was donated directly to the foundation. In he himself year the done foundation grants totalling £95,000.

Mothercare and ELC have a history of the professional management of people. In the last year the center has been in the work to combine two diverse cultures and to keep the best one from both. This has demanded actually bringing of the two functions of the hour in one and reviewing, simplifying and harmonizing of our policies of use so that they are applied to our global business.

One of these equal opportunities of the preoccupations of the policies. The business is trusted to provide the equal opportunities for all the personnel without concerning the race, the sort, the age, the incapacity or the religious bottom. In addition we have undertaken a certain limited work to investigate the diversity of the sort within the group and aimed to assure to us that the business is ethnic representative in warehouses and the central office. The annual objectives pay attention so that to all the personnel it gives a clear picture them of what it is required of him. They value to the employees against these, and this revision of its operation leagues together to its rights of the pay and the premium. In the last year the group has needed the elements that define the culture, or the DNA “” of the group. These are:

  • taken care of for the parents;
  • make the business harder;
  • pull together; and
  • consignable fact.

They have determined all greater ones in charge already against this frame, and is being including now in our processes of the recruitment, the promotion and the valuation. In addition, the personnel can one same-handle his to in line use of the development and frame of development of race. All of these facets have lead to Mothercare being voted one of the top 20 Best Big Companies to Work For by its staff.

This award is adjudicated by the Sunday Times and is based on anonymous survey responses from at least 40 per cent.

The future

The group has fixed a number of targets of the long term to direct and to inspire the work of the CR. These are supported to need annual the objectives what we needed to make every year to keep to us in the track for these aims from more long term. Our 2013 targets are in order to cut the absolute emissions of the coal of our BRITISH buildings and our BRITISH fleet by 15 percents (compared to the line of bottom 2007) to cut the packed one £100 of the products was associated to each that we sell by 15 percents (compared to the line of bottom 2007) to the cut the number of the purses single-uses at least of the carrier by 30 percents (compared to 2007 line of bottom) that we will make sure that on 50 percents of wood products we sell are done of the wood that recycled or is certified by the FSC that it above pushes for the recycling, making sure that at least 75 percents of our sweepings of United Kingdom is recycled so that the program of the community of the group raises £1 million stops to the charity as first it walks towards these, our objectives for the next m year is the action will be taken the use of the energy of the warehouse of the cut including bringing warehouses of ELC in the system of management of the energy of Mothercare and the operation a consolidation of the campaign of the knowledge of the energy of the personnel of the fleets of the delivery of the business to gain effective nesses and to look for ways to increase our use of the transport of track for the merchandise begins a project to review systematically and to reduce the amount of packed in our products and to investigate ways to cut use of the purse of the carrier establishes the data of the line of bottom on our sweepings of warehouses and DCs working a project experimental to investigate ways to reduce the amount of sweepings of the warehouse that is sent to the development of the embankment of a new group-wide policy in the purchase and to the use of wood products and the paper, bringing to the whole group until the same greater levels they review our approach to give charitable with an aim to concentrate more of our activity with a single society of large-scale that can be applied to the world-wide business of all the group, including our partners of the license

Bill Carlson

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