SSC Marketing Discuss Mothercare’s Plans To Close More UK Stores

April 16, 2012 - PRLog -- SSC Marketing is a London based sales and marketing company and is not surprised at Mothercares decision to close some UK stores. Mother, baby products and children wear retailer Mothercare said it would close more UK stores as it seeks to restore profitability in its home market, after sales slumped in the fourth quarter. The Managing Director of SSC Marketing said, ‘in these economic times it has become the norm that so many retailers are closing their doors. Its either take corrective action now or cease trading completely – so this decision is to restore profitability within the company. SSC Marketing’s success has come from identifying a gap in the market in building cosmetic brand customer base. The marketing systems we have developed can be transferred into multiple industries so we are confident in our growth plans succeeding this year.’

Last November the firm launched a strategic review of its British business having detailed plans in May to close about 110 stores over two years as leases expire. This would reshape its UK business to a profitable core of 200 stores. Having closed a net 62 stores in its 2011-12 year it will now close 111 stores over the next three years to March 2015. Mothercare is taking a realistic approach to its future plans basing decisions for the next few years on past experience and profitability. SSC Marketing agrees with this strategy with our source saying, ‘this is a bitter sweet approach in that so many people with lose their jobs in the process however this strategy will keep the company afloat.’

The firm forecast the closures would improve UK profits by about £13 million by March 2015. It said the store closures and cost savings will require an investment of £35 million. A refinancing of its banking facilities has been agreed. Mothercare is battling intense competition in Britain from supermarkets and internet players as well as a weak consumer environment. ‘With so many factors contributing to the loss in sales Mothercare is doing the right thing closing so many stores in order to regain profits,’ continues the MD of SSC Marketing.

http://www.thisislondon.co.uk

# # #

S.S.C Marketing is based in central London and specialises in face to face customer acquisitions, bridging the gap between client and consumer.