Failure of Mothercare business within UK

This dissertation investigates the failure of Mothercare business within the UK market, including the factors that affected the business, consequences for the UK market, and ways for Mothercare to recover. The study aims to determine the present condition of Mothercare in the UK market and uncover the main causes of its failure.

Dissertation

Table of Contents
TITLE: - Failure of Mothercare business within UK......................................................................3
CHAPTER 1 : INTRODUCTION...................................................................................................3
Rationale of study...................................................................................................................3
Aim: -......................................................................................................................................4
Objective.................................................................................................................................4
Research Questions................................................................................................................4
Structure of the Report...........................................................................................................4
CHAPTER 2 : LITERATURE REVIEW........................................................................................6
The factor that affect Mothercare business in UK..................................................................6
Several consequences that affected UK market due to failure of Mothercare.......................7
Ways through which Mothercare can recover from its current position in UK market.........8
CHAPTER 3 : RESEARCH METHODOLOGY............................................................................9
CHAPTER 4 : DATA ANALYSIS AND INTERPRETATION...................................................15
CHAPTER 5: CONCLUSION & RECOMMENDATION...........................................................24
Conclusion............................................................................................................................24
Recommendations................................................................................................................25
REFERENCES..............................................................................................................................27

TITLE: - Failure of Mothercare business within UK
CHAPTER 1 : INTRODUCTION
Mothercare plc is a British retailer that offer its product or services that are related with
the child care that comes under the age group up to 8 years it mainly caters the customers that are
mother-to-be, new babies and children up to the age of eight. It opened up its first store in 1961
within Kingston, Surrey and at that time it mainly focuses over nursery furniture, pushchairs and
maternity clothing. But after that it expanded business by including range of clothing for children
as well. Now, it offers’ wide range of products such as maternity as well as children’s clothing,
bathing, bedding, feeding, furniture, travel and toy equipment’s by managing range of retail
stores in street of United Kingdom and several other countries of Europe, Africa, Middle East
and far East. In year 1972, Mothercare become the first brand that get converted into public
company and then in year 1982 it get merged with Habitat chain of retailers and after that in year
1984 it get enter to the international business by developing its franchise retail store in several
different countries. Now, it is currently operating its business in more than 40 countries
throughout the world with the help of franchise agreement.
But recently unsuccessful story of Mothercare revealed where it has been found that
company get fail in performing well within the UK market. It leads to shut down of many stores
and now it reach up to 79 stores only within UK and its online business is also get affected
hugely with the sever loss of approx. 2800 jobs after getting call in administrator from
PricewaterhouseCoopers. The company is operating in UK market from year 1961 and also get
listed within the London Stock Exchange but from year 1972 it started get an issue in competing
with the cheap super market clothing ranges and after that great rise within the online shopping
also affected its profitability. This issues gradually increases with the advancement of technology
and development of more and more competitors within marketplace. As a result of which the
Mothercare found it very much difficult to manage effectively in Market of UK and for cutting
off cost it started closing it stores from the Streets of country.
Rationale of study
The main aim behind performing current study is to determine the present condition of
Mothercare of within UK as well as uncovering various facts that are the main cause behind the
failure of company within the UK market (Barrow, Barrow and Brown, 2015). In addition to this

it will also support in determining the number of consequences that it brings along with its
failure to the UK market. This in turn further help the other organising in getting an idea
regarding the factors that may affect business which in turn support them in formulating effective
strategies. Other than this, by deeply investigation about the factors that are causing failure to the
business it become easier to determine the actions that can be taken into consideration for
improving its condition.
Aim: -
“To investigate the major reason behind the failure of Mothercare in UK market.”
Objective
 To find out the factor that affect the Mothercare business in UK
 To identify several consequences that affected UK market due to failure of Mothercare.
 To analyse ways through which Mothercare can recover from its current position in UK
market.
Research Questions
 What are several factors that affected the Mothercare business within UK?
 What are several consequences that affect the UK market Due to the failure of
Mothercare?
 What are several ways through which Mothercare can recover from its current position in
UK market?
Structure of the Report
It is considered to be a most significant part of a dissertation which represent about set of
chapters that are involved within it and information that each chapter represents. This provide
reader an overview about the chapters which make it easier to understand the information
effectively. The structure of report is mentioned below:
Introduction: - This is first and foremost section of the dissertation which represent
basic information about the topic over which study is to be conducted along with its background
information. Additionally, it also presents information regarding the rationale behind the study as
well as main aim or objective of the study over which the whole study depends.
Literature review: - This chapters is considered to be a base for a research as it perform
a thorough study over the main topic of the research by evaluating the existing information

already available through several secondary sources. This support in determining the nature of
study so that researcher can proceed the research further by considering the existing knowledge
as a base. This section support in providing direction to the study by providing a specific area
that help in deciding the actions to be taken for performing study.
Research methodology: - This is third and most important chapter for a dissertation as it
provides detail about the set of methods, tools, techniques etc. used for performing current study
in more effective manner. This support the reader in getting an idea regarding the procedure used
for performing and presenting the study so that it can understood more effectively.
Data analysis and interpretation: - Under this section of an investigation the gathered
information get evaluated in order to extract out the main findings over which a particular
phenomenon can be proved right or wrong. This section is crucial as it support the investigator in
extracting out the conclusion of all the gathered information.
Conclusion & Recommendation: - This is the last chapter of a report which present the
actual conclusion that get extracted from the findings while comparing it with the main aim of
the study. This will support in determining that whether the aim of study proves to be successful
or not. Additional to this, it also includes recommendation regarding solution to the problem
found in the study.

CHAPTER 2 : LITERATURE REVIEW
Literature review is defined as the process of evaluating the information which is already
beings studied or published which is related with current area of study. This support investigator
in determining the nature of study as well as creating a base of understanding over which further
study can be performed. Hence, literature review support in directing the investigator regarding
the area in which an investigation must be performed.
The factor that affect Mothercare business in UK
Don-Alvin Adegeest, 2019, a well-known retailer that has been trading from around 58
years founds number of difficulties in operating its business for long in UK street. It went
through a huge downturn in term of economic condition as well as its image within the
marketplace. There are number of factors that are behind the failure of business such as
 No differentiation: - The Mothercare is facing a huge competition from increasing
fashion brand, big supermarket as well as online retailers. Though its international market
remained highly unaffected, the core product of Mothercare failed to differentiate itself
from that of other brands such as H&M, ZARA, LIDL, Sainsbury, Amazon, Zalando etc.
 Not digital first company: - In march 2017 Mothercare maintained a turnover of 171.9
million pounds but as the local stores within UK get closed ion order to reduce the debt
or losses, the company fails to provide services through omni channel which customers
demand for (Wardani, Wimanjaya and Cahyaningsih, 2019). This is also one among the
main reason where Mothercare fails to fulfil the demand of its customers which in turn
brings a huge influence over the profitability as well as financial condition of company.
On the other side, Dearbail Jordan, 2019 stated that the one among the biggest retailer is
struggling to operates its business in UK market and its struggles are not at the shore as a result
of which it is finding difficult to find buyer for the operations. The number of factors that are
behind the failure of business are mentioned below,
 Increased competition: - Like other struggling retailers, Mothercare is also facing
several issues and being squeezed by the big increasing fashion brands, supermarkets or
internet. The company has continuously experiencing success at overseas, but UK market
is quite different from others as majority of people prefer to go for online purchasing for

more convenience. Other than this several of its competitors are Tesco, Sainsbury etc. are
offering range of clothing options with more convince.
 Online problems: - With its enter to online platform company experience a better
growth on it and in year its sales grew to hit around £171.9m. But there are number of
issues found in maintenances of E-commerce channel of Mothercare where it is being
complaint by its customer that online structure is too difficult to understand (Wessels and
Kokorin, 2019). As due to geo-blocking a visit to its website take customer to Irish
webpage instead of UK sit. In addition to this there is not any option of sharing link
which make it difficult to take suggestion from other people.
 Downward spiral: - The Mothercare maintains around 353 stores within UK but as it is
struggling with business expenses, so in order to reduce the losses as well as its debts it
was decided to cut down stores to be in level. But this decision went into wrong direction
as regular closure of business is actually damaging the business growth as well as
survival in UK market.
Several consequences that affected UK market due to failure of Mothercare
As per the information presented by Deborah Williams, 2019, Mothercare face several
issues that affected its performance in the marketplace of UK which brings up a biggest turn
within its history. This brings up several negative consequences, as one among the biggest
retailer get failed in the market. As a result of which the retailer which was operating around 134
stores over the streets of UK now get compressed with only 79 stores left at present. This in turn
have a huge influence over the economy of the country as it constitutes one of the major part of
national economy in term of GDP or Tax. Despite of this, it also affected the employment rate of
the country after closure of its stores. This is so because, with the cease of trading in UK by
closing up its chain of stores their remains a total loss of 2800 jobs within UK. This in turn badly
affected the financial condition of several people as country is already facing a sever issues of
economic down turn due to Brexit which has increases the inflation rate. After the closer of
several stores of Mothercare this financial issues are also get increased for some people who are
connected with the brand and working for it from so long (Resnick and Robertson, 2014). This is
so because the closure of its stores take up the job of several people which in turn highly
influence their livelihood as they find it difficult to manage their basic needs without income.
Other than this, they also found it difficult to get job in UK as country is already suffering from

financial crises as many of the organisations get shut due to Brexit. So the shutting down of
Mothercare stores brings up several negative influence over UK as well as people living their.
Ways through which Mothercare can recover from its current position in UK market
According to the view point of Robson and et. al., 2015, the market failure of Mothercare is
getting more and more challenging for it to get recover back as its is getting difficulty in
improving the current position in market and also not become able to manage the current stores.
But in order to get back its position it become very crucial for the Mothercare to put more
emphasis over its administration practices so that the errors that are present within the operations
can be improve or rectified so that work can be further improved. Despite of this, the Mothercare
must also focuses toward setting up its online presence in more effective manner so that it can
provide a tough competition to the brands that are already dealing in the market and getting
benefited with the failure of business (Imtiaz, 2015). By setting up the online presence the cost of
the company can be reduced which can be further implement over improving the current
practices of the business and can be used for promoting the brand without spending much over
the promotional events. Hence by saving the cost from this side the Mothercare take advantage
of its for improving its current market performance. Other then this there are several other
actions that Mothercare can take in order to improve its position by attracting customers toward
it, such as
 It must focus toward improving its in store convenience by well arranging and categories
the products as per different attributes. This is so because the customers are switching to
supermarket due to this feature of convenience. Hence it supports in providing customers
a factor visit store and experience a most convenient and happy shopping.
 The e-commerce channel provides 24-hour facilities which attract the customers most,
hence by adding this option to its physical store, Mothercare would be able to regain its
customer base and as a result of which its issues regarding access to cash can also be
resolved with increasing profit.
 Another option that it can add to its store are self-checkout services this in turn support in
providing customer a self-service option which in turn support in reducing the queue
time. Additionally, it also supports in reducing the further recruitment cost as well as
delays in work.

CHAPTER 3 : RESEARCH METHODOLOGY
It is considered to be most crucial part of a study as methodology section consist of detail
information regrading number of tools and techniques that are present in front of investigator and
methods that is selected by them to perform investigation effectively. This section provides a
guidance to the researcher regarding the set of activities it must performed in a particular manner
in order to gather the information in effective manner as per the relation of pre decided aim of
the study. The research methodology plays a significant role within study by setting up the
pathway over which actions must be performed in order to complete a particular study. The
number of tools and methods used for current study are mentioned below,
Research Philosophy- It basically represent or indicates a of principles and procedures
that are concerning the stance and view for which the research is actually conducted. It usually
consists of two types of study i.e. Ontology and epistemology where the ontology is concerned
with the authenticity and reliability of collected information for research and the ways how it has
been collected (Kranc, and et. al. 2019). On contrary Epistemology is related with the valid and
reliable information that is required to conduct a research in and to reach a specific conclusion.
Further, the research Philosophy is divided into two main parts that are named as positivism and
interpretivism. Out of these two the first one i.e. positivism is associated with the fact the
knowledge is independent from the subject or theories being studied. On the other hand,
Interpretivism is concerned with individual’s perception and understanding about reality that
differs from person to person. For current research work, use of Positivism research philosophy
is made as it facilitates a better set of principles that helps in conducting research in more
scientific and practical way and thus, results in better testing of research phenomena.
Research methods: - For performing an investigation effectively it become essential to
choose right type of method through which information is to be collected. There are usually two
type of research methods used by an investigator such as qualitative and quantitative. Under this
qualitative method are the one that support in collecting larger amount of information over the
research topic by considering theoretical concepts (Silverman, 2016). On the other hand,
quantitative method is one where information is being gathered within statistical form over a
particular phenomenon. For performing this study quantitative mean of study will be adopted by
the researcher as it supports in collecting quantified data which make it easier to prove a

particular phenomenon wrong or right. This also help in presenting data with more accuracy so
that best possible findings can be presented over particular research topic,
Sources of data collection: - It is about the sources used for collecting the information
regarding current area of study. Within an investigation, information is gathered either through
primary or secondary sources of data (Kumar, 2019). In this primary source are one that support
investigator to gathered fresh as well as first hand data which is not yet gathered by any other
person before through sources like questionnaire, interview, survey, focus group etc. On other
side, secondary information is one where information is collected by analysing already presented
information using sources like books, journals, articles etc. For performing this investigation
over the failure of Mothercare business within UK market the information will be gathered using
both the sources such as primary and secondary (Parry and Gwaza, 2019). Among this primary
information will be collected with the help of questionnaire which will be asked from its
manager. On the other hand, secondary information will be collected from the sources like
journals, books, articles etc. so that evidence can be collected from the previously performed
study that provide direction for primary study.
Sampling: - It is considered to be a process of selecting group of people out of available
population in order to gather information from them regarding a particular event or phenomenon
on behalf of all. There are two sampling tools that are mainly used for a study such as
probabilistic and non-probabilistic (Taherdoost, 2016). For collecting this information over this
study probabilistic approach is being consider by the investigator as it helps in avoiding bias
behaviour in term of selecting respondents for study by provide equal chance to each of them for
being selected. Hence, random sampling method will be used under probabilistic approach where
sample size for collecting information would be 50 customers.
Research approach- It is mainly a plan that consists of some broad assumptions and methods for
data collection, its analysis and finally the interpretation of collected data. Research approach is
basically of two type out of which one is selected by researcher on the basis of nature and kind of
resrch problem (Pérez-Torres, Vidal and Tena, 2019). Out of these two one, is Deductive
research approach that focuses on development of specific hypothesis development based on
some literature review and the other one is inductive approach that is associated with creation of
a new theory. For current research work and investigation use of deductive research approach is

made as it provide better implication and analysis of quantitative research data and also
facilitates better generalisation of collected data.
Research Design- It is framework that includes a combination of research methods and
techniques chosen by a researcher. The most widely used research designs are Descriptive and
experimental (aur, Sharma and Kumari, 2019). Out of these two uses of descriptive research
design is made for current investigation as it facilitates better use of case-study, observations and
surveys to address and achieve the research objective and support in performing detailed study to
make the data more understandable and informative.
Research strategy- It basically includes the planning and strategies to collect authentic
information through use of some action or experimental research, surveys, interviews, case
study, etc (Zenda, 2019). For current research the strategy is based on collection of data through
survey method in which data is directly collected from the selected respondents through making
use of a questionnaire.
Instrument used- The instrument that is used for collection of data is questionnaire that is
written document and used for conducting surveys under quantitative research method. It is an
effective instrument to collect data as it offers a direct reach to respondents to collect authentic
information with help of various questions stated in a written form (Sholikhah, Sumani and
Rahmasari, 2019). Further, use of questionnaire is also a time as well as cost-effective manner of
collecting primary data.
QUESTIONNAIRE
Q1 Are you aware about the issues due to which Mothercare business get failed in UK market?
a) Yes
b) No
Q2 What are several issues that Mothercare business is facing now within UK market?
a) Declining in sale
b) Customer brand switch
c) Reduction in revenue
Q3According to you, what are several reasons behind the failure of Mothercare business?
a) Increasing competition from fashion brand
b) Inappropriate online access

c) Ineffective business maintenance
Q4 Do you think, Mothercare must focuses toward improving its internal business operations in
order to overcome current issues?
a) Yes
b) No
Q5 What are several stakeholders that get affected through the business performance of
Mothercare within UK?
a) Employees
b) Investors
c) Customers
Q6 As per your view point, what are several action that Mothercare has already taken into
consideration for overcoming its issues?
a) Cutting up company’s cost
b) Closing up stores
c) Providing online services
Q7 Do you think, decision of Mothercare regarding closing up its stores from the UK street was
right?
a) Yes
b) No
Q8 What kind of influence does closure of Mothercare’s physical stores bought to the company’s
position in marketplace?
a) Positive
b) Negative
c) Neutral
Q9 According to your perception, why does the e-commerce channel of Mothercare fail to
deliver satisfactory services among customers?
a) Competition from giant players
b) Complex process
c) Dissatisfaction among customers
Q10 Do you think, increasing reach over digital channel will support Mothercare to become
competitive in front of other players in marketplace?

a) Yes
b) No
Q11 Does these issues may lead Mothercare to shut off its business from UK market in near
future?
a) Yes
b) No
Q12 As per your thought, what are several improvement Mothercare must bring to its business
for achieving sustainability in marketplace?
a) Enhance digital presences
b) Simplify online access
c) Increase in-store options
Time horizons and activities- It is mainly of two type i.e. cross sectional and longitudinal
out of which cross sectional is associated with single point of time while longitudinal implies
observations for several years, months or days. For current research work use of cross-sectional
time horizon is made and beside this use of a time management tool i.e. Gantt chart is also made
as it facilitates effective reflection and presentation all associated activities at one place in a
proper manner (Lucia, 2019). Use of following Gantt chart is made to depict all research
activities in more systematic manner that ensures clarity and transparency in research work in
order to achieve objectives on time.

Cost, access and ethical consideration- For conducting any research and instigation an
adequate amount of funds are needed to meet various expense and cost of the research (Flicker
and MacEntee, 2020). Further, to ensure ethical considerations, all the code of conducts and
principles together with ethics and morale are meet by researcher to ensure that none of the
research activity should not hurt or harm sentiments, emotions and other physical aspects of any
respondents and participants. Thus, a written consent and confirmation is taken from all
individuals before their involvement in research work. Proper care for safety and data protection
is also taken while performing current research.

CHAPTER 4 : DATA ANALYSIS AND INTERPRETATION
Data analysis is considered to be most essential part of an investigation as it helps in sorting
the gathered data and then evaluating it in order to arrange it in effective manner for performing
the analysis to get valid outcome or finding in accordance with pre specified aims and objectives.
This support investigator in extracting the outcome by effectively analysing the gathered
information so that pre specified aims and objective can be solved. For this there are number of
tools that are used for analysing the gathered information in effective manner such as content
analysis, thematic analysis etc. For performing this study content analysis will be used as it help
in presenting theme of each question within questionnaire that support in providing an overview
regarding the upcoming discussion of the data so that reader can make appro[priate
understanding from this.
Frequency table
Q1 Are you aware about the issues due to which Mothercare business
get failed in UK market?
Frequency
a) Yes 9
b) No 1
Q2 What are several issues that Mothercare business is facing now
within UK market?
Frequency
a) Declining in sale 4
b) Customer brand switch 3
c) Reduction in revenue 3
Q3According to you, what are several reasons behind the failure of
Mothercare business?
Frequency
a) Increasing competition from fashion brand 5
b) Inappropriate online access 3
c) Ineffective business maintenance 2
Q4 Do you think, Mothercare must focuses toward improving its
internal business operations in order to overcome current issues?
Frequency
a) Yes 6

b) No 4
Q5 What are several stakeholders that get affected through the
business performance of Mothercare within UK?
Frequency
a) Employees 4
b) Investors 3
c) Customers 3
Q6 As per your view point, what are several action that Mothercare
has already taken into consideration for overcoming its issues?
Frequency
a) Cutting up company’s cost 3
b) Closing up stores 4
c) Providing online services 3
Q7 Do you think, decision of Mothercare regarding closing up its
stores from the UK street was right?
Frequency
a) Yes 8
b) No 2
Q8 What kind of influence does closure of Mothercare’s physical
stores bought to the company’s position in marketplace?
Frequency
a) Positive 6
b) Negative 3
c) Neutral 1
Q9 According to your perception, why does the e-commerce channel of
Mothercare fail to deliver satisfactory services among customers?
Frequency
a) Competition from giant players 5
b) Complex process 2
c) Dissatisfaction among customers 3
Q10 Do you think, increasing reach over digital channel will support
Mothercare to become competitive in front of other players in
marketplace?
Frequency
a) Yes 8
b) No 2
Q11 Does these issues may lead Mothercare to shut off its business Frequency

from UK market in near future?
a) Yes 7
b) No 3
Q12 As per your thought, what are several improvement Mothercare
must bring to its business for achieving sustainability in marketplace?
Frequency
a) Enhance digital presences 6
b) Simplify online access 2
c) Increase in-store options 2
`
Interpretation: -
Theme 1: - The issues due to which Mothercare business get failed in UK market
Q1 Are you aware about the issues due to which Mothercare business
get failed in UK market?
Frequency
a) Yes 9
b) No 1
Interpretation: - From the above-mentioned information it can be said that 9 out of
selected sample size said that they have awareness regarding the main issues that their
organisation is facing and cause behind them. On other side 1 of them has not much idea as
company is facing numerous of issue and there is not a particular point regarding which it is
clear that its main cause of failure in marketplace. Hence, majority of people are aware as the
main thing in front of stakeholder of Mothercare is that their sale as well as profitability is

declining rapidly and its larger number of stores are shut off in order to deal with this situation as
well as overcoming over their expenses.
Theme 2: - Several issues that Mothercare business is facing now within UK market
Q2 What are several issues that Mothercare business is facing now
within UK market?
Frequency
a) Declining in sale 4
b) Customer brand switch 3
c) Reduction in revenue 3
Interpretation: - There are number of issues that Mothercare is facing in the market of UK
and as a result of which it get fail in dealing with demand of marketplace. By studying over this
it has been found that 4 respondents said that declining of sale is the major issue for company as
its performance is getting downward as compare to their competitors. But 3 respondents said that
customer brand switch is main issue as by getting a greater number of options over services
customer started comparing and then choosing the best possible one. While 3 said that reduction
in revenue is become major issue. From this it has been found that declining in sale was major
problem as it increased the expenses of company which make it difficult to survive in
marketplace in front of other competition.
Theme 3: - Several reasons behind the failure of Mothercare business
Q3According to you, what are several reasons behind the failure of
Mothercare business?
Frequency
a) Increasing competition from fashion brand 5

b) Inappropriate online access 3
c) Ineffective business maintenance 2
Interpretation: - As per the data presented above it has been determined that there are number of
reasons behind the failure of Mothercare ands its closure of stores from the UK street. By
performing study over this it has been identified that 5 mangers from the sample size of 10 it has
been determined that the competition from the several different fashion brands are the major
cause behind its failure. On other hand 3 respondents said that inappropriate online access was
the major reason behind it, while 2 said that ineffective management of business is the major
cause behind its failure. From this it has been found that the more pole is over increasing
competition, as larger number of supermarkets get opened in UK which offer range of products
at relatively lower price then that of Mothercare.
Theme 4: - Mothercare must focuses toward improving its internal business operations in
order to overcome current issues
Q4 Do you think, Mothercare must focuses toward improving its
internal business operations in order to overcome current issues?
Frequency
a) Yes 6
b) No 4

Interpretation: - While performing investigation over the actions to be taken by Mothercare for
improving its market performance it has been found that around 6 respondents are agreed over
the statement that Mothercare must put its emphasis over internal business. This is so because by
improving its internal business operation it become easier to offer satisfactory services to its
customers that may improve its performance. On the other hand, 4 respondents said no to this, as
the brand image of Mothercare get affected among the customers so it must firstly focus toward
improving its image and then try to improve internal practices.
Theme 5: Several stakeholders that get affected through the business performance of
Mothercare within UK
Q5 What are several stakeholders that get affected through the
business performance of Mothercare within UK?
Frequency
a) Employees 4
b) Investors 3
c) Customers 3

Interpretation: - With the failure of Mothercare business there are number of stakeholders
that get affected. By performing investigation, it has been found that according to 4 respondents’
employees are the stakeholder that majorly get affected. On the other hand, 3 respondents said
that investor get affected as their return over their investment may get affected badly with the
loss that company is facing. While 3 said customers get affected as it is one among oldest brand
and several people prefer to purchase their essentials from the stores of Mothercare. From this it
has been found that more polls are toward employees, this is so because they lose their job and as
a the Brexit issue is higher the unemployment is relatively higher.
Theme 6: - Several action that Mothercare has already taken into consideration for
overcoming its issues
Q6 As per your view point, what are several action that Mothercare
has already taken into consideration for overcoming its issues?
Frequency
a) Cutting up company’s cost 3
b) Closing up stores 4
c) Providing online services 3

Interpretation: - As Mothercare is facing issue from a larger time period, it takes up
several action to recover from its business issues. While investigating data over this it has been
determined that 3 managers state that company work toward cutting up its cost so that declining
of profitability not leads to increasing further expenses of the company. On other side 4
managers said that it works toward closing its stores that are unproductive for the company and
increasing its cost. But 3 said company focuses toward developing its online approach at e-
commerce platform in order to improve its performance at marketplace. From this it can be
conclude that closing up stores was a big step where Mothercare assess the financial performance
of its stores and those that are yielding losses are being closed in order to stop expenses as well
as cutting up rental cost.
Theme 7: - Decision of Mothercare regarding closing up its stores from the UK street was
right
Q7 Do you think, decision of Mothercare regarding closing up its
stores from the UK street was right?
Frequency
a) Yes 8
b) No 2
Interpretation: - According to the information gathered above it has been identified that 8
out of 10 respondents said that the decision of Mothercare regarding closing up its stores for
reducing the issues was right. But on the other phase other 2 respondents said that no, this has
increased its issues as it affected the brand image by its own. Hence, it has been found that more
people are in favour of this decision, as according to them the stores that get close from UK
street are increasing the expenses of the company and not yielding any sort of profit from its

operations. Therefore, with the help of this it become able to reduce its expenses by closing up
the stores that are results into more and more expenses to the company as these stores are unable
to generate sales from customers as more preference is given to online stores within country.
Hence by closing these stores it become able to minimise there expenses by reducing the rental
costs and other maintenance as well as stock cost.
Theme 8: - Kind of influence does closure of Mothercare’s physical stores bought to the
company’s position in marketplace
Q8 What kind of influence does closure of Mothercare’s physical
stores bought to the company’s position in marketplace?
Frequency
a) Positive 6
b) Negative 3
c) Neutral 1
Interpretation: - The Mothercare business brings up several influence and by performing
study over this it has be found that 6 managers said that it brings positive influence over business
by reducing the cost of company. While 3 said it brings up negative influence as it directly
influences the market image of company in front of its target market. While on the other hand 1
of them said that it brings up neutral impact over the business which means there is not any
influence that company has experienced after closing up those stores the problems are continuing
to be run. From this it has been found majority of people believe that it bring positive influence
as by cutting off unproductive stores it become easier for company to minimise expenses and at
the same time remain focused toward more productive stores that can improve the position of
company by performing well.

Theme 9: - The e-commerce channel of Mothercare fail to deliver satisfactory services
among customers
Q9 According to your perception, why does the e-commerce channel of
Mothercare fail to deliver satisfactory services among customers?
Frequency
a) Competition from giant players 5
b) Complex process 2
c) Dissatisfaction among customers 3
Interpretation: - The E-commerce business of Mothercare is also not become able to
perform well in marketplace due to several reasons. By investigation over this it has been found
that 5 respondents said that it is facing competition from other big E-commerce players. But on
the other side, 2 respondents said that its online page has complex process of shopping that leads
to its failure, but 3 respondents said that dissatisfaction among customers is the major cause
behind its failure. From this it has been found that the majority of people are in favour of
competition from giant players is the major cause. This is so because get a late call for starting its
business at digital platform but before that larger number of players have already entered in this
and delivering services to customer in more convenient manner.
Theme 10: - Increasing reach over digital channel will support Mothercare to become
competitive in front of other players in marketplace
Q10 Do you think, increasing reach over digital channel will support
Mothercare to become competitive in front of other players in
marketplace?
Frequency

a) Yes 8
b) No 2
Interpretation: - From the above-mentioned data it has been found that from the selected
sample size, 8 managers said yes that increasing its reach over digital channel it become easier
for the Mothercare business to remain competitive in marketplace. While on other hand 2
respondents said no to this as digital channel will remain ineffective until and unless it became
able to differentiate it among the competition present in marketplace. It has been identified that
majority of people are in favour of this statement as by increasing its online reach it become
easier to improve its current brand image in front of customers that support in influencing them
to make purchases. As a result of which it further support in enhancing the market position by
ensuring the flow of transaction from the customer’s side.
Theme 11: - Issues may lead Mothercare to shut off its business from UK market in near
future
Q11 Does these issues may lead Mothercare to shut off its business
from UK market in near future?
Frequency
a) Yes 7
b) No 3

Interpretation: - The issues in Mothercare business are increasing from year that make a
question in the mind of its stakeholder that whether it become able to overcome from this issue.
Hence, by gathering information in this area it has bene found that 7 managers said yes that f the
situation remains same till years and it won’t be able to capture the attention of its customer
through physical stores than chances would be there for this. But on other hand, 3 respondents
said no to this, as according to them by capturing attention of people through online channel it
can also get existence at physical outlet too. From this it can be presented that majority of people
are in favour of this as the issues of Mothercare is increasing and the expenses of the company is
also increasing day by day. This in turn make it difficult to invest over its services as all are
getting converted into losses.
Theme 12: - Several improvement Mothercare must bring to its business for achieving
sustainability in marketplace
Q12 As per your thought, what are several improvement Mothercare
must bring to its business for achieving sustainability in marketplace?
Frequency
a) Enhance digital presences 6
b) Simplify online access 2
c) Increase in-store options 2

Interpretation: - By performing investigation over several actions that can be taken into
consideration it has been found that 6 respondents said that by enhancing digital presence it
become easier to achieve sustainability. While on other side, 2 respondents said that by
simplifying the online access sustainability can be achieved, but 2 respondents said that
increasing in-store operation would help in resolving issues. From this it is found that
Mothercare can recover from these issues by increasing its digital presence as it help in reducing
the cost of operations and on the other side it become easier for customers get products through a
medium which they prefer. In addition to this by becoming its online presences stronger it
become easier for the company to provide a tough competition to other giant players as it is
having years of experience in offer mother and baby related products or services.
CHAPTER 5: CONCLUSION & RECOMMENDATION
Conclusion
From the above discussion it has been concluded that, there are some factors which become
the reason of Mothercare failure in the UK market. Company fail to achieve their business goals
& objectives due to lack of strategic decisions. Due to underperformance Mothercare business
have to shut down their many stores and currently it has only 79 stores in UK. It further affects
the employment and around 2800 people lose their jobs because of its failure. Mothercare
affecting in order to complete with cheap market but they do not focus on online trends which
become more popular. Lack of technology implementation becomes the failure of company
because they open stores in the several locations without evaluating market trends. It means
online shopping is in trend, so they need to adopt online approach to boost their sales and done
digital marketing to increase demand in all over the country. In result, due to cost cutting

Mothercare have to shut down their stores which affect many people who working there. By
performing investigation in the market identify the company’s position in the UK market.
Company done market survey and ask questions to 10 people and 9 responded out of 10 know
about the Mothercare business failure. Consumers think that, there are several issues for its
failure such as declining in sale, customer brand switch and reduction in revenue. But the actual
reason it, company not follow the market trends and modify their strategies accordingly.
Organization should focus on improve internal business operations and due to its failure, several
stakeholders group affected specially their employees because they lost their earning sources and
consumer shifted to another brand. In addition, in order to resolve this issue people suggest that
company need to cut their cost, close down stores and focus on online promotion and selling. In
the current business environment competition increases so they organizations need to implement
unique or advanced technology to attract many people in minimum duration.
Recommendations
It has been recommended that, Mothercare Company should follow some strategies to
overcome from the failure which they currently face. This is very important for Mother Care to
put extra focus on its management procedures so that the failures present in the operations can be
corrected or rectified in order to improve the work further. Nonetheless, the Mothercare still
needs to concentrate on building up its social media presence in a more efficient way so that it
can provide the brands that are already competing on the market with strong competition and
benefit from business failure. The cost of the organization can be minimized by setting up the
online platform, which can be eventually applied to enhance the existing marketing practices and
can be used to promote the brand without spending much on promotional events. Therefore the
Mothercare takes advantage of it by saving the expense from this side to increase its current
market efficiency. Company have to follow online promotion and marketing platform to attract
more audience. Mothercare can use various media outlets to advertise your business and brand.
These include TV, radio, retail outlets, banners, newspapers, and social media. It will provide
various benefits such as Brand recognition provide correct details to the consumers, improve
consumer traffic, revenue and Profits.
Another alternative that can be applied to the store is auto-checking facilities, which in
turn encourages offering a self-service system for the customer, which in turn helps to reduce the
queue time. In fact, it also supports reducing the initial training costs as well as job delays. E-

commerce platform offers 24-hour services that reach the most customers and it allowing
Mothercare to recover its consumer base by adding this alternative to its physical store. Also
resolve these problems with access to funds and that benefit. It will concentrate on enhancing its
comfort in store by well organizing the goods according to various attributes and categories. It is
so because due to this convenience feature the consumers are going to supermarket. It also
supports the provision of a visit store for customers and offers the most easy and comfortable
shopping experience.

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