Major nursery product e-tailer goes multi-channel with new store as families have have fewer offspring and later in life leaving bigger disposable income for retailers to attract. Kiddicare expansion news and insight into competitive pricing.
Kiddicare focuses on multi-channel
The big news in the baby and nursery retail worlds is that Kiddicare, owned by Morrisons has big plans for expanding the business by opening Kiddicare flagship stores, first one to welcome its customers in Nottingham this Wendesday, 26th September. The new stores will occupy 10 former Best Buy store locations and are aimed to gain Kiddicare an extra £150 million in sales. This marks a big strategy change for Kiddicare, who was primarily trading online. This comes with a lick of paint on Kiddicare’s branding and increase in product offering.
What is also interesting about Kiddicare stores, is the customer ability to purchase via apps, kiosks and online, meaning that Kiddicare is one of the retailers embracing the digital world and connected customers. In practice, the superstores will also have electronic pricing, testing facilities for buggies and free car seat fittings, that are so high in demand.
Is digital pricing – the way to manage competition
While the expansion marks Morrison’s significant investment into baby product business, it also makes its competitors keep an extremely watchful eye on Kiddicare’s attempt to manage pricing across multiple channels. Kiddicare has arranged its new shops to have digital pricing at store shelf ends, which, if executed well, is more cost effective than manual price changes, is quicker to update and can give a competitive advantage to the business and boosts sales. An example of this would be to display product pricing against its competitors higher price offering.
Kiddicare has been an online retailer for a long time making it proficient in keeping the prices in check and website up-to-date. With its plans to step into the high street arena, it will be interesting to see how Kiddicare manage the price consistency across the multiple channels, which is a legal requirement. No doubt in theory, the digital pricing in physical stores should aid the process.
Price matching wars
Besides Kiddicare, some major players in this field are: Amazon, Mothercare and Boots, along with Mamas and Papas. In our research, Amazon is extremely competitive in its pricing when it comes product price matching to its competition with no exception in the baby product industry.
Today we identified 50 most stocked products from brands such as: Maxi Cosi, Baby Bjorn, Medela, Cosatto, Trunki Tommee Tippee among others and compared its pricing among Amazon, Boots Kiddicare and Mothercare. Here are the results:
- Amazon cheapest at 43
- Kiddicare cheapest at 12
- Boots at 7
- Mothercare 10
As Amazon were the most competitive at 83% of the product sample, at this point, we feel the results should be cross-referenced with how many Amazon’s cheapest prices were matched by Kiddicare, Boots and Mothercare. The results are as follows:
- Out of 43 products that both Kiddicare and Amazon sell, Kiddicare matched the price of 8 products
- Boots matched 5 and Mothercare 9.
Hence if we take the the 7 products that Amazon’s pricing was not the cheapest and take into account the price matching excercise by the other brands, Kiddicare offered 4 products, Boots 2 and Mothercare 1 at the cheapest prices respectfully.
We will be monitoring the changes in the industry and will update this blog with the latest analysis, so please visit again or perhaps email us with your comments or to find out more information about our retail pricing intelligence service.