Retail chain's bumpy trading unlikely to affect Irish stores

Trading problems affecting another British retail chain seem unlikely to have any impact on business in Ireland. Last week, the Storehouse group, which owns Mothercare and Bhs, announced a sharp drop in revenues and the worst profits since 1994. As a result, the company's shares fell 11 per cent and its chief executive Keith Edelman resigned. In the Republic, however, both Mothercare and Bhs are run as franchises; however, the latter's outlets closed down late last summer.

This is the second time that Bhs has opened and shut in Dublin. In the 1980s, the business moved into the large block on O'Connell Street which is now home to Penneys. The space was shared with other members of the Storehouse group, Mothercare and Habitat. However, as part of a rationalisation programme in March, 1992, Storehouse closed down its operations in this market.

At the time, David Ward, who was working for the company, acquired the Mothercare franchise, maintaining premises already operating in Dublin's St Stephen's Green Shopping Centre. Since then, Mr Ward has opened a further seven Mothercare outlets and now has five in Dublin and one each in Cork, Limerick and Galway. Another Mothercare branch is due to make its debut next September in the George's Court Shopping Centre of Waterford. Thanks to Ireland's buoyant economy, Mothercare has been trading much better than its sister company in Britain, says David Ward. "Our like-for-like sales here have increased 17 per cent over last year. The Irish market has not experienced anything like the problems faced in Britain. The birth rate in Ireland is up something like eight per cent and obviously that has helped too." The difficulties experienced by the Storehouse group and its Mothercare division have led to planned shop closures and redundancies in Britain but this is unlikely to happen in this market. Three years ago, Storehouse acquired the Children's World outlets, since renamed Mothercare World, from Boots.

"A lot of the problems were to do with strategic management decisions about outlets," Mr Ward explains. "I know we can't keep opening more stores over here. We're not in the Liffey Valley Centre, for example, because we have branches in Tallaght and Blanchardstown. The Irish market is exceedingly competitive now and you have to look after your customers." Among the means used by Mothercare Ireland to attract and retain customer loyalty are special information evenings, held in different stores every month. At these events, products are demonstrated and health advice offered by a midwife. "We make sure Mothercare customers stay with us," says David Ward.

"I often say to our managers that we've got a terrific brand and a terrific concept, which is as good today as it was when first created over 50 years ago."

As for Bhs, this has been franchised in the Republic for the past four years to Heatons, which opened three outlets (in Kilkenny, Letterkenny and Dublin's Jervis Centre) under the British chain's name. But in 1998, all three were changed to Heatons shops. According to Heatons boss, John O'Neill, the reason for this alteration was "poor performance. By converting back to our own name, the stores have traded up 40 to 50 per cent. All we've done is keep certain Bhs product sectors within our stores."

Mr O'Neill says that while his company continues to hold the Bhs franchise, there are no plans at present to open any stores under its name. The only Bhs outlet remaining in Ireland is in Belfast. A spokeswoman for the company last week said this was "doing well; we've no issues with that store".