Mothercare, a bricks and mortar and online retailer of products and services for mothers and children, has announced that becoming ‘digitally led’ is part of its new business strategy.
“Our ambition is for Mothercare to become the leading global retailer for parents and young children,” said Mark Newton-Jones, chief executive. Going on to say: “By modernising and transforming the UK into a digitally-led business supported by a modern store estate we will underpin the growth of the group’s successful international business.
The news follows Mothercare’s plan to raise £100m by launching a rights issue that it hopes will provide it with a “sustainable future”. Mothercare has asked shareholders for £100m to fund store closures, store refurbishments, a revamp of its IT systems and the repayment of debt.
£10m will be invested in digital systems and infrastructure to improve the links between its physical and online presence. iPads and interactive screens will be used in stores in an effort to become this “digital first” retailer. Shoppers will be able to access demonstration videos, customer reviews and broader product range.
Meanwhile, it is expected that £25m will be applied to store closures and £20m will be invested in the store refurbishment programme; Mothercare, which also owns Early Learning Centre, is reported to be shifting its focus from the high street to out-of-town stores. In addition, £40m will be spent on the full repayment of the group’s existing term loan.