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Mothercare web sales boom
…by almost 80 per cent

By Julian Goldsmith

Published: Thursday 22 May 2008

Online sales at Mothercare rose by more than 78 per cent over the last financial year, hitting £85.5m.

The children's clothing and equipment retailer said online sales from its Direct in Home website were up 19.7 per cent to £49.9m over the financial year, while Direct in Store sales, where internet purchases are made in the store were also up 43.5 per cent to £35.6m in the same period.

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Much of this growth was down to big a increase in the ranges available. For instance, the retailer now has more than 400 types of pushchair and 150 car seats online, claiming the largest selection of these products available in the UK.

In its financial results statement Mothercare said: "A key driver of Mothercare Direct growth in recent years has been our web-enabled store strategy, where every Mothercare till has the capability to order anything available online on our website, for delivery to the home."

During the same period, the retailer launched Gurgle.com, a social networking and information site for parents. This site now has more than 45,000 registered users.

Mothercare is also expanding the clothing ranges and is considering ways of extending the Direct business into international markets.

The results come against a background of severely reduced profits for the retailer as a result of one-time charges incurred by integrating recent acquisition Early Learning Centre.

In a statement, Mothercare CEO Ben Gordon said: "Although there is some caution about the UK consumer environment, we are well placed as we enter the new financial year. Our prospects for growth are driven by further benefits from the acquisition of the Early Learning Centre, international expansion opportunities, strong momentum in our Direct business and the reshaping of the combined UK property portfolio."

A focus for the coming year will be to optimise the Early Learning Centre website and improve its performance. Mothercare will also be looking to bring web-in-store to the Early Learning Centre store network in that period.

Mothercare's results appear to support the latest findings from the IMRG Capgemini e-Retail Sales Index, which shows an 85 per cent jump in online clothing sales and a 20 per cent jump in footwear, online in April. Researchers attributed the lift to the unseasonably bad weather, keeping shoppers at home.