TESCO considered a bid for mother and baby products retailer Mothercare to help reinvigorate its supermarkets, the Sunday Times reported.
Citing retail sources, the newspaper said Tesco examined a bid six months ago but has put the plan on hold. However, the recent fall in Mothercare’s share price could rekindle Tesco’s plan according to the City insiders – though they added that Tesco has made no approach so far.
Tesco and Mothercare declined to comment on the report yesterday.
Mothercare warned earlier this month that full-year profit would reach only half of what analysts had expected, after record Christmas discounting and a drop in visitors to its stores hit sales and margins. The company’s shares have fallen 42 per cent over the past six months.
Tesco, the world’s third biggest retailer, has also had a run of poor results and is 21 months into a turnaround plan for its main British business that has seen over £1bn invested in store revamps, more staff, new product ranges and pricing initiatives.
City A.M. Reporter