Online retailer in megastores major move

Fast-growing internet retailer Kiddicare is set for a fresh growth spurt after its new owner snapped up 10 former Best Buy megastores last Thursday.

Supermarket group Morrisons will spend £15 million (€18 million) converting the giant outlets and has pledged to create 700 jobs as it looks to provide the Kiddicare brand with a major retail presence.

The Bradford-based chain acquired Kiddicare, which currently runs just one flagship store in Peterborough – the largest children’s outlet in Europe – for £70 million (€84 million) last year.

It was originally thought that the grocer was interested in Kiddicare’s slick internet operation and distribution system but today’s plans look set to shake up the UK kids’ products market at a time when sector leader Mothercare is struggling to reverse falling sales.

The purchase involves all but one of the Best Buy stores that were closed this month following a failed joint venture involving Carphone Warehouse and American electricals giant Best Buy.

Kiddicare said the move would create 700 jobs, but it would not be taking on the 1,100 former Best Buy workers who are understood to have been found other roles within Carphone Warehouse.

It means the UK grocer has beaten French-owned Deca-thlon, the world’s biggest sports retailer, to salvage the bulk of the chain.

Morrisons plans to start opening the new stores – in Merry Hill, Aintree, Rotheram, Nottingham, Thurrock, Hedge End, Croydon, Hayes, Bristol and Enfield – by the autumn. It did not buy the store in Derby.

The sites will offer advice and customer service such as car seat fitting and will drive sales through Kiddicare’s website.

Kiddicare chief executive Scott Weavers-Wright said: “These 10 flagship stores will put Kiddicare within easy driving distance of nearly a third of the UK population.

700

The number of jobs the move will create

“As well as being fantastic destination superstores for families across the country, they are the ideal platform for Kiddicare.com to lead the baby market by giving a true multi-channel experience.”

Kiddicare, which was founded in 1974 by Neville and Marilyn Wright, generated turnover of £37.5 million (€44.9 million) in 2010 after growth of 75 per cent in the past three years.

It currently employs about 210 people, so the move will mark a dramatic expansion.