Mothercare opened the first of its own retail shops in 1961 and its particular mail-order arm at 1962. In 1972 the company went public, spreading into Europe and Asia during its own franchise operations.
While e-commerce contest undoubtedly impacted on turnover over the high street, and different upcoming retailers were undercutting Mothercare on price, ignoring the needs of your core market is business suicide.As with so many of the high street retail giants, the personalized touch vanished. Young, first time moms -to-be, were left to their own devices when it came to picking what they’d want for their firstborn. Add to this the very fact in most shops they mightn’t even obtain glowing shiny new pram or buggy around the stores, and eventually customer loyalty begins to wane. From the first three months of 2018, Mothercare saw a further reduction of almost 3% in like-for-like sales, attributed to a further decrease in consumer attention in its own bricks and mortar functionality.
However, online sales through its outlets rose by more than 2%, while earnings through a unique web site increased by 7 percent. It seems that these round of 50 stores closing might well not be the last. Mothercare’s CEO is quoted as saying, “My immediate priority would be to ensure Mothercare is put back on a sound financial footing and to improve its own financial efficiency. We continue to make good progress in cutting back the size of our UK store estate in reaction to shifting consumer preferences.” For’changing consumer preferences,’ read internet shopping. Hopefully, the Mothercare brand will survive this present crisis, but its period as a high street presence might be limited.
Since the arrival of rival smart phones, in particular that the iPhone, its own sales have gradually dropped. Having reached a deadend, the Directors have just given their agreement to sell all stocks to the Fairfax Company. The expenditure company gains in insurance, intends to buy all of the Group’s shares at 9 dollars every year, for a total of 4.7 million dollars, and eventually become a private firm. Whilst the investment is enormous, it is perhaps not adequate for 40 percent of BlackBerry’s employees to keep their jobs, and more than 4500 people will be set off after the possible take over by Fairfax.Fairfax would like to give the pioneer of their smart mobile a boost, but not to the general public.
The war declared between its own competitors, Apple, Samsung and Microsoft hasn’t left space for Blackberry from the cell phone sector (8% of earnings of smartphones).
Thus BlackBerry plans to depart this sector of activity to concentrate exclusively on products for professionals. Other purchase proposals are required before 4 November, when BlackBerry has to move its arrangement to Fairfax. To the moment, this minority investor just owns 10% of the funding, but plans to catch it fully. Since August, Prem Watsa, director of Fairfax, has stood down from BlackBerry’s Board of Directors to prevent any conflicts of interest, even in anticipation for their upcoming transaction.