Mothercare is in talks with China’s biggest manufacturer of childcare products about an alliance that would involve the British retailer taking its first steps on Chinese soil.
Ben Gordon, the chief executive, who has focused on growing the company’s international footprint since he was parachuted in just over four years ago, is in early-stage talks with Goodbaby, a private equity backed firm, about the launch of a chain of jointly branded stores targeted at China’s increasingly free-spending middle class.
It is thought the talks could eventually lead to Mothercare taking a minority stake in Goodbaby, although it was not clear last night whether such a move had already been discussed. People close to the negotiations said it remained possible that no agreement would be struck.
If a deal is reached between the two sides to take Mothercare into China, it would be arguably the most important stage in the company’s international expansion to date. Mothercare has been one of the British high street’s most successful international exports, with overseas franchise stores in 38 countries now accounting for almost a third of group sales.
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