Big steps lie ahead for Kiddicare

Supermarket group Morrisons is understood to be sizing up several Best Buy megastores in a bid to grow its Kiddicare brand.

The Bradford-based grocer is believed to be in advanced talks with Carphone Warehouse about 11 “big box” sites, which are in the process of closing after a failed joint venture with American electricals giant Best Buy.

The move has the potential to shake up the UK baby products market at a time when market leader Mothercare is struggling to reverse falling sales.

When Morrisons bought Kiddicare for £70 million last year, it was thought that the supermarket chain was interested in the Peterborough-based firm’s slick internet operation and distribution system.

However, following a successful trial where Kiddicare internet kiosks were placed inside Morrisons stores, allowing supermarket shoppers to order baby equipment, the group wants to expand the brand.

The large out-of-town stores operated by Best Buy would also enable Morrisons to stock some of its non-food offering as it starts to compete in this area with the likes of Tesco, Sainsbury’s and Asda.

It is not thought that a deal will be signed in time to accompany today’s Christmas trading update by Morrisons.

The supermarket group is expected to report underlying sales of 1 per cent, compared with an expected decline at Tesco.

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

It has a state-of-the-art distribution facility and operates the largest nursery equipment retail store in Europe.