Mothercare: Middle East Disruption Puts Pressure on Franchise Network
Mothercare’s latest results reveal the impact of Middle East disruption on its franchise network, offering important lessons for franchise operators in Kuwait.
Mothercare has reported a sharp decline in sales and profitability after a difficult financial year, with Middle East disruption affecting one of its key franchise regions.
For the 52 weeks ending 28 March 2026, group revenue fell 42% to £22.4 million. Adjusted EBITDA declined 63% to £1.3 million, while the retailer moved from a £6.2 million statutory profit to a £5 million loss.
A franchise network affected by regional conditions
Mothercare attributed much of the decline to ongoing instability in the Middle East, alongside the end of its partnership with Boots in the UK.
Worldwide retail sales generated by Mothercare franchise partners dropped from £280.8 million to £180 million. The number of stores operating under the brand also fell from 372 to 331.
The situation provides an important example for the Kuwait franchise market, where international brands and local franchise partners operate within a broader GCC business environment.
Why franchise resilience matters
Mothercare’s results demonstrate that regional disruptions can have a direct impact on international franchise performance, particularly when a brand has significant exposure to a specific geographic area.
For franchisees in Kuwait, this highlights the importance of working with franchisors that have robust operational support, contingency planning and diversified international operations.
A wider lesson for franchise investors
Mothercare noted that like-for-like retail sales were positive when the Middle East and UK operations were excluded. The performance difference illustrates how diversification across markets can help international franchise groups manage regional volatility.
For Kuwait’s franchise ecosystem, the case reinforces the value of careful franchise selection, strong local partnerships and long-term risk management when investing in international brands.
Middle East Franchise Editorial Team