Mothercare's international drive to boost sales growth

The landmark was met during the first half of its financial year to October 9, when UK sales fell 0.5 per cent and international revenues lifted 17 per cent.

The company has just opened its 50th store in India and its 800th store overseas as part of plans to add at least 150 international outlets in the financial year – 50 more than its previous estimate.

The expansion into some of the world's faster growing economies has helped Mothercare offset the impact of difficult trading conditions in the UK, where its like-for-like sales fell 3.8 per cent in the first half.

In April, it reported its first drop in UK like-for-like sales for 19 quarters and chief executive Ben Gordon said yesterday that the company was prepared for the trading pressures to continue.

He added: "The UK consumer environment remains uncertain, and accordingly we are planning cautiously for the important second half."

While high street trading has been testing, Mothercare has been encouraged by double-digit sales growth at its UK home shopping arm.

Internationally, Mothercare has been targeting India and China as key growth markets after forming joint ventures with local partners.

It also recently acquired a 25 per cent stake in its Australian franchisee, which will have 60 Mothercare and Early Learning Centre stores in three years through a combination of acquisitions and organic growth.

Mothercare has developed its wholesale business with the launch of Mini Club, a clothing partnership with Boots trading in 370 Boots stores.

And while UK like-for-like sales were lower, it said this was partly driven by its store relocation programme.

Total UK sales rose 1.8 per cent in the second quarter, while international retail revenues were 14.2 per cent higher.

This was below the level seen in the first quarter after temporary disruption to Mothercare's Russian business due to the August heatwave affected sales, which were flat on a like-for-like basis in the half year.