Mothercare in overseas growth bid

BABY products retailer Mothercare is accelerating its expansion overseas, particularly in India, and has raised its profitability target for international stores.

The company expects total overseas "network" sales to double to 1 billion by 2014.

As well as expansion in many of its existing 53 markets, Mothercare said it had identified Latin America, Scandinavia, Japan, South Korea, Vietnam and north Africa as areas for growth.

It will open 175 overseas stores in its 2010-11 financial year, up from previous guidance of 150, and 150 a year from 2011-12 onwards, up from a previous target of 100.

Mothercare, which has been battling a tough consumer backdrop in the UK, said it would have 70 stores in India by March and would increase that to at least 200 by March 2015.

It is also targeting a 20-30 basis point increase in international profit margins per year, up from its previous goal of 10-20 basis points.