Mothercare: Middle East Disruption Puts Pressure on Global Franchise Network
Mothercare’s latest results highlight how Middle East disruption and the end of its Boots partnership have affected its international franchise network and profitability.
Mothercare has reported a significant decline in sales and profitability, with disruption in the Middle East weighing heavily on one of its most important franchise regions.
For the 52 weeks ending 28 March 2026, the retailer recorded group revenue of £22.4 million, down 42% year on year. Adjusted EBITDA fell 63% to £1.3 million, while the company moved from a £6.2 million statutory profit to a £5 million statutory loss.
Middle East disruption impacts franchise performance
The results underline the importance of the Middle East to Mothercare’s franchise-led business model. Management said that ongoing instability in the region was one of the main factors behind the decline in performance, alongside the end of the company’s partnership with Boots in the UK.
Worldwide retail sales generated by Mothercare franchise partners fell from £280.8 million to £180 million during the year. At the same time, the number of stores operating under the Mothercare brand decreased from 372 to 331.
The impact has continued into the new financial year. During the first 19 weeks of FY27, franchise partners generated £58.5 million in sales, compared with £68.8 million during the same period a year earlier.
A regional challenge with wider implications
Mothercare’s performance illustrates how regional disruption can affect international franchise networks, particularly when a specific market represents a significant share of a brand’s overseas operations.
However, the company also reported signs of resilience outside its most affected markets. Like-for-like retail sales were positive when the Middle East and UK operations were excluded, suggesting that performance in other territories remained comparatively stronger.
Franchise resilience becomes a key priority
Mothercare’s latest results highlight the importance for international franchisors and franchise partners of maintaining geographic diversification, strong local partnerships and the ability to adapt operations during periods of market uncertainty.
The company is now focused on restoring critical mass, supported by refinancing and efforts to strengthen its franchise network. For brands operating across the Gulf and wider Middle East, the situation provides a useful example of the importance of risk management and long-term franchise resilience.
Mothercare’s experience also shows that the performance of an international franchise system can be closely linked to conditions in key regional markets, making market diversification and flexible franchise strategies increasingly important for sustainable growth.
Middle East Franchise Editorial Team