A contracting and shopfitting company is playing a key role in the conversion of former bargain centres into baby goods superstores for Bradford-based Morrisons.

The opening of the Croydon Kiddicare outlet on Monday will mark the sixth store conversion by PEC, based on Bradford's Euroway trading estate.

PEC has completed the full internal fit-out of the stores, meeting an eight week deadline on each property, from empty shell to completion including making bespoke items at its Bradford joinery workshops.

Morrisons bought the former Best Buy megastores last year and is spending £15 million converting them into outlets of Kiddicare, which it also acquired for £70 million in 2011.

PEC has worked with Kiddicare on a design concept and stores opened in Nottingham, Merry Hill in Dudley and Lakeside, Thurrock, last year. This year, PEC has worked on Aintree, Enfield and Croydon.

PEC founder and chairman Balbir Panesar said: “We have been working with Morrisons since 2011 and they introduced us to the Kiddicare team to help with the fit-out of the first new format superstore in Nottingham. We worked closely with the architect, London-based Darnton EGS, on this exciting new retail concept, assisting with parts of the design and selection of materials.

“Kiddicare customers like to touch and feel products before they buy, so it’s important that the stores support the brand’s online proposition by providing an enhanced shopping experience.”

PEC finance director Steve Fowler added: “This has been a high-profile and fast-paced project for PEC.

“The quality of the stores’ internal finish is bound to come under scrutiny and we are delighted Kiddicare has chosen to trust us with this important development in their company’s evolution.”

The stores include a play area, cafe, a buggy test track, pushchair repair workshop, a community event room and baby showers.

Meanwhile, Morrisons’ new trading partner online retailer Ocado has slumped back into the red in spite of rising half-year sales as it took a major hit from the opening of new warehouses.

Ocado said growing customer numbers boosted revenues by 15 per cent to £382.7 million during the 24 weeks to May 19. But the cost of opening distribution centres in Dordon, Warwickshire and Hertfordshire, helped drag it to pre-tax losses of £3.8 million from maiden profits of £200,000 a year earlier.

Its expanded operations will be used to support a 25-year tie-up with Morrisons, which plans to begin delivering groceries to customers' homes by the end of 2013 . It will use Ocado's technology and operations, including delivering groceries from Dordon through a Morrisons-liveried fleet.

Morrisons will make an initial payment of up to £170 million to Ocado to buy Dordon and associated handling equipment and further £46 million will be invested to expand Dordon to accommodate the Morrisons range, integrate with Morrisons systems and establish a network of delivery ‘spokes’.