Kiddicare’s success relies on the retailer re-engaging with parents whose love of the business was once at the heart of its proposition.

The rise of Kiddicare to become one of the country’s ecommerce darlings, culminating in its sale two-and-a-half years ago to Morrisons for £70m, coincided with the period in my young family’s life when we were smack in the middle of the baby specialist’s key target market.

I can attest first-hand to how successful Kiddicare had been at gaining advocacy among a growing, loyal customer base that was the envy of its category. Word-of-mouth recommendations from young mothers in particular, delighted by a customer-centric approach to retailing, put to shame some high street incumbents.

Add a reputation for digital excellence that promised to propel Morrisons into online, as well as the perceived need for the grocer to leap into non-food, and the logic behind the acquisition in many ways still makes sense.

But the sale of the company to private investment firm Endless for £2m this week, on top of the £163m provision Morrisons’ boss Dalton Philips believes will cover the costs associated with the exit, points to the huge challenges of making acquisitions work – as well as the flaws in Morrisons’ execution following the deal.

“Kiddicare quickly became an unwelcome distraction from the principal challenges Philips and his team faced”

Chris Brook-Carter, editor-in-chief, Retail Week

In hindsight, it is easy to argue the timing of the purchase was misjudged. The maternity sector itself has not only come under further pressure, but the acquisition coincided with Morrisons’ core grocery business entering a trading environment characterised by punishing headwinds.

Kiddicare quickly became an unwelcome distraction from the principal challenges Philips and his team faced.

But the response by Morrisons’ leadership also betrayed a lack of clarity around the original rationale of the deal. Not only did it fail to integrate and then leverage the Kiddicare brand by selling it through Morrisons stores, it never understood how to make the best use of the entrepreneurial culture it bought.

Jumping into bed with Ocado signalled the end of the road for Kiddicare under Morrisons. But the decision to burden the maternity brand’s business model with the costs that come with big-box physical stores, instead of reinvesting in its digital capabilities, is just as symbolic of the lack of understanding of what it had acquired.

Endless faces a tough challenge. New owners of Mamas & Papas and fresh management at Mothercare will only heighten competition in the category. Where Morrisons failed, Endless must understand the essence of Kiddicare’s success and re-engage with the new parents whose love of the business was once at the heart of its proposition.

  • Chris Brook-Carter, editor-in-chief, Retail Week