Ecommerce and brand strength to be leveraged as Simon Calver arrives from Lovefilm.
Mothercare is considering franchising UK shops and more store closures as part of its ongoing strategic review.
The embattled maternity specialist is considering its options as new chief executive Simon Calver prepares to take the reins.
Mothercare chairman Alan Parker said franchising UK stores has “been on the agenda for some time”.
At the moment Mothercare owns all its own stores here and has an extensive franchise network internationally.
Other big retail names have deployed the franchise model in the UK before, most notably Body Shop. Mothercare has an extensive franchise network internationally. In the Middle East its partner is Alshaya. Middle Eastern groups have shown interest in moving in to the UK - Alshaya recently picked up the UK franchise for La Senza.
New boss Calver brings ecommerce, branded goods and franchise experience from previous roles.
Adoption of a franchise model would enable Mothercare to make the most of its branded product while removing some of the risk associated with store ownership.
Parker said the strategic review, which will be completed by the end of March, may result in more store closures. The retailer is already shutting 110 out of 373 stores.
Calver will work alongside UK boss Mike Logue to turn around the domestic business.
Panmure Gordon analyst Jean Roche said: “It’s been the neglected twin of the Mothercare business. Management have skimped on it and it’s in a deprived state.”
Parker said Calver was a good fit for the job as he had the “right blend” of ecommerce and international expertise having worked at Pepsi Co and Unilever.
Retail Week revealed Mothercare would prioritise consumer brand expertise and would look outside the boundaries of traditional retail to replace former chief executive Ben Gordon (October 14, 2011).
A turnaround could take some time. Peel Hunt analyst John Stevenson said: “There’s no waving a magic wand. It needs to improve its proposition and pricing.”
Verdict practice leader Maureen Hinton said Calver’s online and international experience was a clear sign of what was important in driving Mothercare’s future growth.
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