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Mothercare-Goodbaby venture tests the waters

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Mothercare, a Britain-based babycare retailer expanding in the mainland, said its joint venture with the country's biggest baby-goods maker will roll out a retail network nationwide once three trial stores have proved successful.

The venture, in which Mothercare owns 30 per cent and Goodbaby Group 70 per cent, would open two stores in Beijing and one in Shanghai in six months, Mothercare chief executive Ben Gordon said.

Each store, to be located in shopping malls, would occupy between 3,000 square feet and 4,000 sq ft and target middle-segment to high-end customers, Mr Gordon said.

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Mothercare teamed up with Goodbaby because of the company's strong distribution network in the country.

Goodbaby, a supplier to Mothercare, wants to raise US$200 million through an initial public offering in Hong Kong later this year.

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Mothercare is joining its rivals in expanding in the mainland, where sales of baby-care products are expected to surge as people become richer and better-educated.

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