KIDDICARE, Merry Hill's baby specialist shop will close next month, with the loss of around 100 jobs.
It is one of 10 stores across the country that will shut up shop on September 7.
The Brierley Hill shop, which sells nursery supplies and items for children and young families, opened in 2012.
Endless, which recently acquired the business Morrisons, has decided to close the stores as they are making a "heavy loss" but will continue to trade as normal online and keep the Peterborough store open.
Garry Wilson, managing partner at Endless, said it was a "difficult situation" and stores were not being closed "for the sake of it".
He continued: “Fundamentally Kiddicare is a good ecommerce business and we need to make sure it’s not dragged down by the heavily loss-making stores.”
Mr Wilson added his primary concern was ensuring employees were“properly treated” and that the business was adequately capitalised.
Morrisons has retained the liabilities relating to leases for the Kiddicare stores, but a company spokesman said the financial provision has been made to cover the remaining costs of exiting the business.