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Mothercare launches more flexible payments as it hopes for sales boost

Published
today Sep 19, 2019
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Mothercare is hoping to convince families and mothers-to-be to spend more online and in store with the addition of new flexible payment options.


Mothercare


The struggling nursery retailer has previously blamed fragile consumer confidence for its financial troubles, which led the company to a company voluntary agreement (CVA) last year.

Extending its partnership with payments provider Klarna, Mothercare has launched three new payment options: Pay Later, Pay in 3 and Slice it (0% interest), which allow customers to pay for products including cots, clothing and car seats in instalments.

Luke Griffiths, general manager at Klarna UK, commented: “With new arrivals, parents are already being kept awake at night and we believe that finances shouldn’t be an added factor. The freedom and flexibility our products offer is perfect for new parents who don’t necessarily have the luxury of spending whenever they need to – especially when it comes to big purchases, like pushchairs.”

Donna Storey, global digital & marketing director at Mothercare, added: “From pushchairs to babygrows, sometimes little ones need things that just can’t wait until payday. We wanted to partner with a business that could help us give families more control over how and when they pay, but also make the shopping experience smoother and less stressful. Klarna was the obvious choice for us as the market leader in payments and experience. We can’t wait to see how our customers respond to the new products, knowing it will help make their lives just that little bit easier.”

This is one of several projects Mothercare is working on to stimulate sales. In its first quarter report, the business said customers using credit options led to increased basket sizes, however this was not enough to offset a 23% decrease in total UK sales.

As the turnaround continues, the company is focusing on moving its UK business to a franchise model and findind new financing to support its goal of being bank debt-free by the end of the year.

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