Mothercare's turnaround pledge

Mothercare issued yet another profit warning on Tuesday after another difficult Christmas, but new chief executive Ben Gordon has pledged a turnaround eventually.

'It takes time, but in three to four years we should have a thriving and profitable business,' he insisted.

As Mothercare reported UK like-for-like sales down 1.1 per cent for the 13 weeks to January 10, Gordon said he is focusing on a review of five key areas of the business.

The results of the review will be announced in May at the store group's preliminary results. Distribution, sourcing, product mix, the store portfolio and customer service are all the issues being assessed.

Gordon said the company's distribution problems are likely to be addressed first. This may mean staying with logistics firm Tibbet & Britten or moving to a new warehouse. An announcement is likely before May.

Gordon has already hired a logistics director. 'Logistics now has a profile in the business which it didn't have before,' he said.

More new senior managers may be drafted in: 'The logistics gap was the biggest. It's now about putting more people in.'

The review of the store portfolio is also under way. Gordon said there will be 'some house cleaning', but he would not rule store closures in or out.