Morrisons is set to shake-up the children’s goods retail market by expanding the high street presence of an online company it bought a year ago.

The Bradford supermarket group has snapped up ten former Best Buy megastores and plans to spend £15 million converting them into outlets of Kiddicare, which it acquired in a £70 million deal. The deal was viewed as accelerating Morrisons move into internet trading.

Around 700 jobs will be created at Kiddicare as Morrisons provides the brand with a retail presence in addition to its single flagship store in Peterborough, the largest children’s outlet in Europe.

Morrisons’ investment in high street children’s retailing comes at a time when sector leader Mothercare is struggling with falling sales.

The purchase involves all except one of the Best Buy stores that were closed this month after a failed joint venture involving Carphone Warehouse and American electricals giant Best Buy.

Kiddicare said although the move would create 700 jobs, it would not be taking on the 1,100 former Best Buy workers who are understood to have been found other roles at Carphone Warehouse.

It means Morrisons has beaten Decathlon, the world's biggest sports retailer, to salvage the bulk of the chain.