Mothercare: Middle East Disruption Highlights the Importance of Franchise Resilience in Saudi Arabia

Mothercare: Middle East Disruption Highlights the Importance of Franchise Resilience in Saudi Arabia

Mothercare’s latest results show how Middle East disruption can affect international franchise networks, highlighting the importance of resilience and diversification in Saudi Arabia.

Mothercare has reported a sharp decline in sales and profitability, with disruption across the Middle East identified as one of the key factors affecting its franchise-led business.

For the 52 weeks ending 28 March 2026, group revenue fell 42% year on year to £22.4 million, while adjusted EBITDA declined 63% to £1.3 million. The retailer also moved from a £6.2 million statutory profit to a £5 million statutory loss.

Why the Middle East matters to Mothercare’s franchise model

The company identified ongoing instability in the Middle East, alongside the end of its UK partnership with Boots, as a major factor behind the weaker performance.

Worldwide retail sales generated by Mothercare franchise partners fell from £280.8 million to £180 million, while the number of stores operating under the brand decreased from 372 to 331 locations.

For franchise businesses operating in Saudi Arabia, the results highlight the importance of building resilient networks capable of responding to changing regional conditions while maintaining long-term growth strategies.

A lesson for international franchise brands

Mothercare’s performance demonstrates how conditions in a strategically important region can have a significant impact on the results of an international franchise system.

At the same time, the company noted that like-for-like retail sales were positive when the Middle East and UK operations were excluded, indicating stronger performance in other territories.

Resilience and diversification remain key

For franchisors and franchise investors in Saudi Arabia, the Mothercare case underlines the value of geographic diversification, strong local partnerships and flexible operating strategies.

As Saudi Arabia continues to attract international franchise concepts, the ability to combine local market knowledge, operational flexibility and long-term risk management will remain an important factor in building sustainable franchise networks.

Middle East Franchise Editorial Team