The analyst community has its say on Mothercare’s move to close a further 110 stores as part of its strategy to quell its declining UK sales:

Mothercare’s transformation strategy is long overdue, but you have to wonder whether it’s coming too late.  Make no mistake about it, Mothercare has messed up. Its quality is in line with the supermarkets and its pricing in line with the high street. Like Tesco, its hunger for overseas expansion has seen it take its eye of the ball at home.”

-     James McGregor, Retail Remedy

“The closure of some Mothercare and Blacks stores are further evidence of the sweeping changes that are taking place across the retail provision in the UK.  The challenging economic conditions are only part of the story - retailers are also responding to the changes in shopping habits of the 21st century time-pressured consumer, the rise of internet shopping and the expansion of the supermarkets.  According to latest CBRE research, the number of shops required to cover 50% of the UK retail market is just 90 trading locations, down from 200 in the 1970s, so market consolidation is an inevitable part of the modernisation of the sector.”

-     Jonathan de Mello, CBRE

“The results serve to highlight the mammoth task awaiting incoming chief executive, Simon Calver. The retailer’s UK store portfolio is large and unyielding. This is a result of its slowness to close high street stores while increasingly focusing on larger out-of-town destinations. It also reflects a failure to consolidate its estate following its acquisition of ELC.

“While his appointment has been viewed as left field, Calver will bring considerable, and much needed multichannel expertise to the business.”

-     Joseph Robinson, Conlumino

“This looks a sensible - and needed - strategy and clearly a lot of work has been done behind the scenes, but fixing the UK is a costly-exercise and for now we remain Sellers.”  

-     Bethany Hocking, Investec Securities

“The broad outline strategy is not particularly surprising. The simple question is how effectively it can be executed, given the competitive pressures Mothercare faces and whether the pace is quick enough. We don’t think there is enough in this statement - or current trading - to turn more positive on Mothercare, given the risks involved.”

-     Sanjay Vidyarthi, Espirito Santo

“This is an encouraging statement from Mothercare, which focuses on stabilisation of the UK business and growth in international and multichannel supported by the refinancing and dividend cut. It is understandably light on detail ahead of the full review in May, but we expect £33m of annualised benefits to be well received.”

-     Gillian Hilditch, J.P Morgan Cazenove