Mothercare Results Highlight Franchise Risks and Resilience Across the Middle East
Mothercare’s weak results underline how regional disruption can affect international franchise networks, offering lessons for franchise operators and investors in the UAE.
Mothercare has reported a significant deterioration in its financial performance, with Middle East disruption putting additional pressure on its international franchise network.
For the 52 weeks ending 28 March 2026, revenue fell 42% to £22.4 million and adjusted EBITDA dropped 63% to £1.3 million. The company also reported a £5 million statutory loss, compared with a £6.2 million profit the previous year.
Middle East exposure weighs on the business
Mothercare said that ongoing disruption in the Middle East was one of the main factors behind the decline, together with the conclusion of its partnership with Boots in the UK.
Retail sales generated by the company’s global franchise partners fell from £280.8 million to £180 million during the year. The number of Mothercare-branded stores also declined from 372 to 331.
The figures are particularly relevant for markets such as the UAE, where international franchise brands often use the country as a regional platform for expansion across the Gulf.
What the Mothercare case means for UAE franchise operators
The results highlight a key challenge for international franchisors: strong regional growth can also increase exposure to regional risks.
For franchise operators and investors in the UAE, the case reinforces the importance of selecting strong international brands, evaluating their geographic exposure and understanding how disruption in one market can affect the wider franchise network.
Building stronger international franchise networks
Mothercare also reported that like-for-like sales were positive outside the Middle East and UK operations. This suggests that geographic diversification can help reduce the impact of difficulties concentrated in specific markets.
For the UAE’s growing franchise ecosystem, the lesson is clear: market diversification, local partnerships and operational resilience can play an important role in supporting sustainable international franchise growth.
Middle East Franchise Editorial Team