Rise in birth rates - but Mothercare loses market share

The UK is experiencing its biggest baby boom since 1971. The Office for National Statistics said last week that 723,913 babies were born in 2011, with hotspots in the south-east of England seeing birth rates up by more than 50%.  But Mothercare is losing market share to the likes of Tesco and Asda at one end, and upmarket boutiques such as Petit Bateau and JoJo Maman Bébé at the other.

Honor Westnedge of retail analyst Verdict says: "We've seen the average age of first-time mothers increase, and older mothers tend to spend more on their children because they have more disposable income. Nothing is too good for their baby." The number of first-time mothers aged over 35 has jumped by 44% over the past 10 years, with those over 40 up 84%. Average spending in infantswear has gone up over the same period from £334 a child in 2002 to £435 in 2012. With the market now worth £1.4bn a year, it's no wonder supermarkets are increasing their ranges of bibs, vests and outfits.

But Mothercare has a plan. A year ago Mothercare poached Simon Calver from film website LoveFilm as its new chief executive, with a nod to its online ambitions. Calver will also take the axe to many of Mothercare's high street stores, focusing on out-of-town shopping centres, where a trip can be a day out. Its flagship store in Edmonton, north London, now boasts a Costa Coffee shop, private ultrasound service and baby and toddler activities.

27th January 2013 The Guardian

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