Mothercare's shares plunge on report of poor Christmas sales

London

MOTHERCARE Plc reported a sharp drop in UK sales over the holiday season, underlining the depths of the country's retail crisis as store owners wrestle with higher costs and a shift to online shopping.

Like-for-like sales in the UK declined 7.2 per cent in the 12 weeks through Dec 30, the childrenswear retailer said on Monday. Gross margins are also set to fall due to higher levels of discounting required to reduce stock in post-Christmas sales, the company said. Its shares plummeted as much as 32 per cent, the biggest intraday decline on record.