Ailing specialist mother-and-baby retailer Mothercare joined the growing list of high street traders to struggle in the festive trading period, posting a 7.4% slump in group sales.
Performance was slowed by its UK division, which suffered a 5.9% fall in like-for-like sales and closed a further 11 stores during the 13-week period to January 12.
Mothercare now trades from 269 UK stores, down from 311 at the beginning of its financial year, and as a result total UK sales dropped 12.9%.
Chief executive Simon Calver admitted it was “going to be hard work” to return the chain to profitability in the UK, but said the company had made “solid progress” despite the challenging consumer backdrop for the UK and eurozone.
In the half year Mothercare cut pre-tax losses from £81.4 million to £27.4m.
Mr Calver was brought in to the firm from LoveFilm in April in order to lead a turnaround, involving retail store closures and a revamp of the Mothercare website, following an earlier slump into the red by £103m.
Stressing the retailer was still “on track” with its three-year plan to revive the UK business, he said the group had made “further progress closing loss-making stores”.
The group aims to shrink its high street footprint in the UK to 200 outlets.
Eight of the 11 stores closed during its last quarter fell under the Early Learning Centre fascia.
Company efforts in a transition to a new online platform, Direct in Home, were rewarded by UK internet sales growth of 0.9%, although a Christmas rush offset a lacklustre start to the crucial festive trading period.
Mothercare’s international division posted a 12% surge in retail sales for the quarter.
Despite declining high street sales in the UK, Mr Calver insisted there remained cause for optimism.
He said new collections were striking a chord with parents – including a range designed by Jools Oliver which sold at one item every minute over Christmas.
Previous celebrity collaborations have included the Baby K range by musician and television presenter Myleene Klass.
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