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Mothercare and Boots sign up for Kids’ clothes deal

A RANGE of children’s clothing and accessories is to be sold in Boots after the chain sealed a deal with Mothercare.

The two already have an agreement through which Boots sells toys from the Early Learning Centre which Mothercare bought in June 2007 for £85m.

Mothercare chief executive Ben Gordon said: “We are delighted with this latest addition to our existing successful partnership with Boots.

“We expect this agreement to be a substantial development in our recently announced wholesale strategy.

“Work has already commenced on what will be a distinctive and quality product range for customers.”

Last year Gordon unveiled plans to open 12 stores in major shopping centres.
Alliance Boots, which is owned by private equity group KKR, said it hoped the agreement would fuel its expansion plans.

Chief executive of the health & beauty division at Alliance Boots Alex Gourlay said: “We believe this move will further strengthen our baby and child range and build on our reputation for offering great value children’s wear.

“This agreement demonstrates our commitment to developing strategic partnerships to grow and expand our business.”

Retail analyst Matthew McEachran at Singer Capital Market estimates the deal could generate at least £3m to £4m in annual underlying earnings for Mothercare by 2012 if the range takes off.