Double-digit sales growth for Mamas & Papas as turnaround completes
THE turnaround of nursery brand Mamas & Papas continued throughout 2016 as it enjoyed double-digit sales growth in the run-up to Christmas, boosted by a record Black Friday.
In the 13 weeks to 25 December, like-for-like sales grew by 11%. ‘Black Friday’ on November 25 beat the previous best online sales day by 29%, while the following Sunday saw record takings at Mamas & Papas’ 32 UK stores, helped by the successful launch of the new Ocarro stroller.
In the year so far, like-for-like store sales are up 10%, with online 13% higher.
The Huddersfield-based company said strong sales growth was also driven by a rise in personal shopping, which now accounts for 10% of UK store sales, up from just 1% a year ago.
Mamas & Papas recently opened three new concept stores, including one in an area of Battersea known as London’s ‘Nappy Valley’ due to its high concentration of affluent young families. The business is actively looking to open another 15 new outlets, half of them inside the M25.
The trading update follows the recent promotion of Jonathon Fitzgerald to chief executive from chief commercial officer. In his new role he will continue to report to Mamas & Papas’ chairman, retail veteran Derek Lovelock.
Mr Fitzgerald said: “These are encouraging results and show that our investment in new formats, new product launches and in digital is really paying off.
“The growth we’ve seen in personal shopping is particularly pleasing.
“Our customers really value good service so we’ve created and curated rich, in-store experiences that encourage parents-to-be to come to us for tailored advice on everything from nursery design and sleep tips to advice on nutrition and wellbeing.”
Mamas & Papas is backed by private equity firm BlueGem Capital Partners.
Accounts just filed at Companies House show that in the 52 weeks to March 27 2016, operating profits at the holding company, which includes franchised international operations, nearly quadrupled to £5.5m (2015: £1.4m).
UK sales totalled £99.8m (£107.8m) as the number of UK stores almost halved during the year to 32 as part of a comprehensive restructure of the business. Like-for-like retail sales grew by 20% during the year, while e-commerce was up 12% at £20.7m.
Sales in overseas markets were 11% higher at £32.9m.
Mr Lovelock added: “In a tough retail climate, our team has successfully completed the turnaround phase at pace, returned the business to growth and profit, and re-positioned Mamas & Papas as the nursery brand for millennial parents.
“With economic growth likely to slow and uncertainty over the course and outcome of Brexit set to continue, trading conditions are unlikely to improve much in 2017, but we can look forward to the future with confidence and cautious optimism.”
