Mothercare UK has announced that Boots is to become the exclusive franchisee for Mothercare brand products in the UK, allowing the baby goods retailer to maintain a physical presence after the closure of its own stores. The retailer appointed administrators in November.
Range to be offered in larger Boots stores and online
Under the terms agreed between the parties, Boots will stock Mothercare-branded clothing, and home and travel products; this latter category includes pushchairs and car seats. The Mothercare product range will be made available in larger Boots stores across the UK including a number of Mothercare shop-in-shops over time, as well as online at boots.com. A limited range of Mothercare products will be available to buy online from mid 2020 and it is expected that a wider Mothercare product offer will be available in Boots stores from late summer 2020.
Five year partnership agreed
Having today entered into binding heads of terms with Boots, Mothercare expects the detailed contractual arrangements to be finalised in the next quarter. The proposed franchisee partnership will be for an initial period of five years and the terms and royalty rates arrangements will broadly be commensurate with those of the Company's existing franchisee agreements.
Building on long term partnership
Mark Newton-Jones, CEO of Mothercare commented: “I am delighted to announce that we have taken our long-standing partnership with Boots to this next stage. In Boots, another much loved British heritage brand, we believe that Mothercare has found the right home in the UK. Boots is at the heart of one of the largest healthcare businesses in the world, and Mothercare will fit in as the specialist brand for parents and young children in both Boots stores and online. We know the team at Boots well from our successful Mini Club partnership which has been established over many years, and we now look forward to working in an even stronger collaboration with the Boots team for the future.
“Today’s announcement is fantastic news for the brand and the millions of Mothercare customers across the UK. It is also great news for Mothercare and our wider group of stakeholders after what has been a tough period. This partnership between Mothercare and Boots UK brings certainty and scale to our continuing group. These are exciting times as we enter into these new arrangements with a partner of the scale, scope and stature of Boots.”