Mothercare, a name known by all on our high streets, which is synonymous with good value, good quality and good customer service, has announced today that as a result of an extended period of falling sales, they will be closing 111 of their stores in the UK.
Like many other retailers today, Mothercare has suffered from reduced consumer spending, high inflation, tax hikes and increased competition. Some say that have fallen behind the times with their quality and branding but what no-one can argue with is the recession has had a major role in the company experiencing a dramatic fall in sales and a dramatic fall in profits which has resulted in a dramatic fall in its share price.
This will adversely affect landlords who own shops let to Mothercare and who must now wait nervously for the time when their tenant tells them they will be closing down. These shops will be difficult to re-let and their values will surely fall sharply.