Mothercare and Boots have forged a strategic tie-up to create a clothing and accessories range.

The offer will be sold in Boots’ stores and could generate profits of up to £5m for Mothercare by 2012.

Both retailers will collaborate on the design, sourcing and supply of the range, which will launch in autumn and replace Boots’ existing kidswear range Mini Mode, developed by Mothercare’s collapsed rival Adams.

UBS analyst Isabel Green said: “This agreement could generate a profit for Mothercare of £3m to £5m once it is fully operational in 2012. We expect 5% to 10% consensus upgrades to full-year 2012 estimates onwards.” Singer analyst Matthew McEachran said: “This is another exciting development for Mothercare. Today’s agreement should be well received.”

Boots already sells Mothercare’s Early Learning Centre toys in more than 400 of its stores.

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