Twitter
Facebook
Linked In
RSS
Login or Register
New to InternetRetailing?
Register Now
Internet Retailing

This is your 1 complimentary article for this month

Become a member for unlimited and immediate access.


Register
Already a member? Log in here

Morrisons moves on from Kiddicare experiment

Linked InTwitterFacebookeCard
When Morrisons spent £70m on nursery pureplay Kiddicare.com,  chief executive Dalton Philips said the acquisition marked the beginning of its ecommerce business. With Kiddicare, he said, came “a robust, scalable and highly-advanced technology platform around which we can begin to build our ecommerce offer.”

Back in 2011, the supermarket had urgent ground to make up since it was then the only one of the big four grocers that did not yet have an online grocery shopping service. But more than three years on, the company this week said it had sold Kiddicare.com for £2m, and that £163m should cover the costs associated with its exit from the business.

Some of that total is related to store lease liabilities: under Morrisons’ ownership the company opened 10 new large format stores, in addition to its original Peterborough showroom, as it looked to make the company a multichannel one. But the Kiddicare acquisition has been an expensive experiment that ultimately didn't work out.

Morrisons, of course, did ultimately launch a long-awaited and still expanding grocery service in January this year, through a tie-up with another pureplay, Ocado, and Kiddicare became surplus to requirements. Morrisons said it was looking to sell it in its March 2014 full-year results.

Over the last year, key Kiddicare staff have left, with Scott Weavers-Wright, chief executive of Kiddicare at the time of the sale, leaving to found technology incubator Haatch last October. Simon Harrow, previously head of digital development at Kiddicare, left to join Haatch after Morrisons’ March announcement.

Kiddicare’s new owner Endless, seems to have got a good deal, however. When Morrisons bought the company for £70m, it had turned over £37.5m in the financial year of 2010. But in the year to February 2014, Endless said, it turned over around £80m.

“Kiddicare has a history as a trusted brand in the children’s market,” said Garry Wilson, managing partner of Endless. “We will be working hard with management to grow the business over the long-term.”
Linked InTwitterFacebookeCard

Become a Member

Create your own public-facing profile
Gain access to all Top500 research
Personalise your experience on IR.net
Internet Retailing
We are the magazine, portal and research source for European ecommerce and multichannel retail, hosting the board-level conversation for retailers, pureplays and brands across all of our platforms. Join the conversation.

© InternetRetailing Media

Latest Tweet

Internet Retailing
Tamebay
eDelivery
Twitter
Facebook
Linked In
Youtube
RSS
RSS
Youtube
Google
Linked In
Facebook
Twitter