Mothercare's collapse into administration today was sadly inevitable (Photo by Andrew Matthews/PA ... [+]
Much is written about the number of job losses on the high street, just last week the British Retail Consortium reported that retail job losses totalled 85,000 in the third quarter of 2019 compared to the same period last year.
And retailer after retailer report that their poor sales performance is down to the weather, Brexit, declining consumer confidence, online sales (er, they're yours as well) or more likely, a combination of all of the above.
And frankly, it's all such a load of nonsense, it's enough to make your finger nails itch.
From Bhs to Toys R Us to Bonmarché, they all had one thing in common. Blaming everything but themselves for their sad demise.
Which is why Mothercare are to be applauded. Because in announcing that the U.K. business will collapse into administration today, they attribute their failure to themselves.
It has become clear that the UK Retail operations of the group, which today includes 79 stores, are not capable of returning to a level of structural profitability and returns that are sustainable for group as it stands or attractive enough for a third party partner to operate on an arm’s length basis.
Last year's CVA which resulted in the closure of almost half their 134 U.K. stores was meant to stave off administration and put the company onto surer footing, however with the news today, it is clear that in this case, a CVA was not enough to save the ailing business.
This means that the remaining 79 U.K. stores will close (the profitable international arm is unaffected) resulting in 2,500 jobs being put at risk.
Chief Executive Mark Newton-Jones said that the business had, "observed a lower-than-expected transfer of sales following the CVA store closure programme which completed in early April 2019."
This was perhaps the most widely anticipated administration on the high street. Long before last year's boardroom musical chairs (when Newton-Jones was fired then reinstated just weeks later) the business had for some time been a strong candidate as next to fall.
A number of years ago, I visited their head Office in North London, and was struck by how unremarkable it all appeared. Sadly, this extended to their stores.
In an age where differentiation is increasingly measured by the experience a retailer provides, Mothercare resolutely stood by the standards of yesteryear. When one considers just what they were selling, this is in itself remarkable.
If ever there was a business which would profit by delivering exceptional service and customer experience by virtue of the very thing they were selling, it was Mothercare.
Mothercare said its "primary objective has been to seek to preserve value for as many stakeholders as possible, as we strive to optimise the level of sustainable long-term revenues for the group going into FY2021 and beyond."
However, the revelation that the business is not "attractive enough for a third party partner to operate" is some admission.
The U.K. retail landscape is one of if not the most competitive in the world and increasingly there is little room for the mediocre and mundane. Indeed, one could argue that what we are witnessing is a systematic weeding out of old retail. In itself, not such a bad thing.
Today, more than ever before, relevance is critical to success. Sadly, the uninspiring, outdated Mothercare epitomised everything but. At least they provided us with an honest appraisal at the end.
