Mothercare committed to China sourcing

The head of British mother and baby products retailer Mothercare (MTC.L) said China's vow to allow greater currency flexibility would not prompt the company to look for better sourcing opportunities elsewhere.

Speaking at the Reuters Consumer and Retail Summit on Monday, chief executive Ben Gordon said Mothercare was not looking to change its sourcing policy despite the yuan's appreciation in the wake of China's move.

Mothercare currently sources the vast majority of its toys and equipment from China and about 50 percent of its clothing.

"We will continue to stay in China. We think the Chinese sourcing really is here to stay though the renminbi (yuan) rising is not going to help on cost, though through sourcing offices (in Hong Kong and Shanghai) we will keep that down," said Gordon.

"We do source a little bit in Bangladesh and we look at places like Vietnam and Indonesia but they are quite small compared to China," he said.