Following a difficult trading period for the nursery and baby products market, Mamas and Papas has posted losses totalling £3.3 million for the six months to 29 March 2020.
The retailer also reported a £9.3 million operating loss for the 18 months to 29 September 2019.
According to its latest accounts, turnover fell to £36.1 million over that six months, compared to £110.7 million over the preceding 18 months (reflecting an adjusted accounting period).
Despite the losses, due in part to the impact of Covid-19 coupled with the costs involved with restructuring the business, the group is eyeing a return to profitability and a potential growth in market share.
The £300 million vacuum left in the market by Mothercare UK after its liquidation, is still to be filled. And Mamas and Papas say it’s ‘uniquely placed to capture a share’. It’s already made considerable gains, with ‘like for like trading’ (when stores were open) said to be significantly ahead of the previous year.
To capitalise on this opportunity, it has opened two new concessions and one new own retail store post the reporting period, and says it plans to open further stores to fill gaps in coverage across the country.
While the company expects trading to remain challenging, and to see a continuing decline in high street footfall, sales online have been strong. To support this growth, as a ‘high priority’, Mamas and Papas is investing in its eCommerce capabilities. With a new web platform launching in early 2021 to drive new customer acquisition.
New products are also being developed for the UK and international market, including a new pushchair this Spring.
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