LONDON Jan 19 Tesco considered a bid
for mother and baby products retailer Mothercare to help
reinvigorate its British hypermarkets, the Sunday Times
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 Tesco
has made no approach so far.
Tesco and Mothercare declined to comment on the report.
Mothercare warned earlier in January 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 percent 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 1 billion pounds
($1.65) invested in store revamps, more staff, new product
ranges and pricing initiatives.
Tough competition for customers and pressure on consumer
finances is putting pressure on British retailers, many of whom
reported poor trading over the Christmas period.