Essential reading for retailers and suppliers in the home improvement market

Homebase to close 40 stores over next five years

Published: 1 November 2012
Following its half-yearly results, in which Homebase saw a like-for-like sales drop of 6.2%, Home Retail Group has announced it will be closing up to five stores before the end of the current financial year, and has no plans to open any new ones.
Homebase to close 40 stores over next five years
The retailer has 65 store leases coming up for renewal over the next five years, and says it is planning to close all but 25 of them. This will bring its store numbers to 300. The decision to halt expansion has come from bosses at HRG choosing to focus more on multi-channel development.

Internet sales at the retailer have grown by a quarter year on year and now account for almost 5% of Homebase's total revenue. Its Reserve and Collect sales grew 31% in the 26 weeks to September 1, and now comprise 1.5% of total sales, while website visits are up 20%.

Following the opening of the new Aylesford store proposition, Homebase is continuing with its concession developments, which will now include Laura Ashley and Habitat. The retailer has also continued its programme of garden centre refits to incorporate "inspirational garden displays" - eleven of these refits were completed during the half year, bringing the total to 33.

Despite its sales drop, HRG says Homebase has continued to grow share in the DIY shed market.

Comments

Published prior to March 2014
By Mr H O'Mebase
By Whisper...my info came from a current RM but you are right to say I should have checked....he may be sending out disinformation to panic the troops on his Region. Just one method of trying to "motivate" his team no doubt! Or he knows more than both of us......MD Family member.....I hope you are wrong but I fear you are right. Your view validates my own opinions of the last 12 months...and the evidence from countless Store Managers who have been forced to leave voluntarily or not during that time. The good news is that other retailers are picking up lots of very good Managers and cannot believe how unprofessionally HB has treated them. One said to me he should have left years ago and advises others to leave now....don't wait for redundancy. The good jobs might have all gone.
Published prior to March 2014
By spider pig
Guys on the showroom. Your peak is likely to be poor this year. There is too much uncertainty surrounding homebase and this uncertainty rubs off on the customer. If I was planning a big ticket project homebase wouldn't be a concideration for me. If you half the money you made last year as a consultant, that probably where you will be by March. Wickeds b&q and howdens will be hurting you very badly. I really hope I'm wrong but based on what I have heard and read it's time to move on from homebase. Good luck
Published prior to March 2014
By cant speak fench
The comment on the Bedford stores means nothing, management are forced to not tell you if a store is to close until they are requested to by higher powers, if your nieve enough to believe they tell you everything then I feel for you.....
Published prior to March 2014
By Bedford Homebase Employee
Bedford stores are remaining open according to managers in store. Not closing like said in a comment before?
Published prior to March 2014
By md family member
Just to clarify what is to happen, the emphasis is on the stores big ticket items to deliver ludicrously high targets this 'peak' a lot of pressure has been passed down to the Rm's to ensure this is delivered, any underperforming managers will be dismissed, after which next year the company will look VERY profitable with the new streamlined business and will be either sold to another company or sold off to a equity firm and then destroyed just like comet, Woolworths and focus was. You heard it here first, April will be the time we will all see these cogs in motion.....
Published prior to March 2014
By whisper
Mr H O mebase,
Hi don't know where you have your info from but I work for them and there is no further announcement other than the 21 announced earlier in November and Battersea, Liskeard

There are currently 38 stores all announced and in various stages of closure the last being in Battersea and Liskeard

Huddersfield Sutton and Loughborough were announced in October and November

Might want to check facts before panicking people ,
Published prior to March 2014
By Mr H O'Mebase
Internal announcement of a further 20 units sold to B&M in last few days. All to close by April 2015. Stores closing in the block of 20+which went into consultation in Nov progressing as expected. Final few closures of the block sold to the range earlier this year now coming to an end. Sutton,Huddersfield, Loughborough going next. This means that there are at least another 40 currently under review with B&M still favourite to buy more. Will the remaining 200 continue to trade as Homebase reviews all options? Will a buyer come in?
Published prior to March 2014
By Insider
Dunstable under consultation inc towcester and wellingborough. Completed by 17th Dec (good timing). All store spending cut to focus on closures. 40 more stores announced in Jan. RMs and high paid SMs being targeted for dismissal to save money. Sad times.
Published prior to March 2014
By RobinDasgupp
We have been told that Folkestone, Herne Bay and Canterbury are three "definate" closures because of poor performance and not fitting in with Corporate plans. I think that this will come as no surprise to anyone who knows these stores.Word is that Aldi and Poundland have already sent in their people to check out the fit. The problem is that Home Retail are not being very helpful with communication to the store managers or staff,they are in limbo but senior management are not bothered as TUPE will kick in when the time comes.This has left many staff whose employment go back to the old Texas Homecare days left feeling depressed,yet Homebase have always demanded loyalty.It just goes to show what a rotten retailer they are.
Published prior to March 2014
By anon
Does anyone know an update on which stores in kent are closing?
Published prior to March 2014
By Jake Howe
Big ticket sales are reported to be especially poor in Homebase since the recent closure announcement. It seems customers are just not trusting that Homebase will be trading by the time their kitchen, bathroom etc. will be ready....and I suppose who can blame them ? if you are spending 1000's . Meanwhile Argos expected to have a bumper Christmas, so after a poor Christmas trading season from Homebase, I can only see the closure plans being accelerated. Many closures to be announced by Christmas.
Published prior to March 2014
By sage
I am amazed if a manager has said that, there are no safe stores.
Published prior to March 2014
By Anon
You have to think how can your manager stand in front of you at a huddle and tell you that your store is better than the rest and somehow your store is safe = utter utter brown smelly stuff or they do think cos we work in a shop we are stupid!!!
Published prior to March 2014
By Dev2809
Birmingham Minworth, Bedworth, Oswestry, Towcester all under consultation
Published prior to March 2014
By gordon
We where told at our refit 3yrs ago that all lease stores will close
Team leaders that did not comply with doing their leadership pack would be shown the door bullying is rife and customers don't get the same service.used to be a great place to work .should rename it shitbase
Published prior to March 2014
By mr local
Wellingborough store closure good as announced.
Published prior to March 2014
By Sly2604
Does anyone know about the stores in the Midlands?
Published prior to March 2014
By Matter of time
Over 20 closures announced Wednesday, North west seems to be the hardest hit, Horwich,Accrington,Wigan,Runcorn,Bromborough,leyland. Barrow. Quick inroads into the further 50 announced at half year statement. Best of luck to all involved
Published prior to March 2014
By A matter of time
more stores to enter consultation on Wednesday, despite what the half year announcement said expect the final store count to be 180-220, 180 is probably the aspiration it's just about wether the leases can be disposed of.
Published prior to March 2014
By Mr.H.O' Mebase
Although commenting as an outsider with no axe to grind and with no links to Homebase whatsoever (except for some inside information given to me by some current and recently ex employees) I am saddened by the deliberately inflammatory posts by By Profit. I thought this and other threads were there to provide a platform to air views in a cordial manner and to give some info to current employees concerned for their futures. By Profit's crass insensitivity and increasingly mocking tone does a great injustice to all concerned. If he does work for HB he needs to realise that however brilliant he thinks he is he will not be protected should the axe fall his way. He has valid views I'm sure but obviously lacks the emotional intelligence to express them in an mature and inclusive way. Please continue to give us the knowledge but be aware of the impact your comments can have on affected individuals.
Published prior to March 2014
By Anon
Profit
What you say maybe true about cash tied up - but are we wrong about high prices, rumours of a sell off (newspaper story not us), stores closing and not always because they are not "profitable" or lease issues, Argos have pretty much if not daily ads running - Homebase only for 15 events,Liberation a scheme to do what exactly? the rate of closures - was 40 over 5 years (pretty much done in 2), Now 80 over 5 years. No denial of a sell off either - and for the record you are the only one to take task with our posts!
Published prior to March 2014
By RobinDasgupp
As said previously it will be no surprise to the Store managers of the affected units.Sadly they have been gagged to prevent telling the staff. A lot depends on the fit of the unit in relation to potential buyers of the sites. "Poundland" are interested in many units in the right location as are The Range. Lidl and Aldi have also expressed an interest.The following stores are earmarked for closure due to not fitting into the profile with achievement of standards or are just poor peformers. Others not here are just in brilliant locations for the land.Previously Kensington store was closed for this reason and no one saw that coming. - Folkestone,Merton,Lewis,Canterbury,Leytonstone.Streatham.East Grinstead,Herne Bay.
Published prior to March 2014
By Profit
Robin and Anon,
You can trace your informed (not) commentary back on this thread, just to recap this business made more profit this half just gone than Argos, had Lfl above the market and gained market share again.
Yes work to do, closing the over inflated chain will not increase operating costs as the cost base will shrink ie head office as well but will do the opposite as it frees cash tied up and increase stock turn ratios. Good news that the MD has gone should see the current performance improvements continue on JW leadership.
Such sad lives , obviously been got rid by this business at some time and are now hugely successful bar room financial advisors .
Published prior to March 2014
By steve
Why not look into the business with a veiw to change and have a good size trade section. Us trade contractors need more outlets for our stock and materials to do the job.
Published prior to March 2014
By dahliajok
Falkirk is closing despite making a profit.
Published prior to March 2014
By its a joke
love all the speculation ha ha
Published prior to March 2014
By RobinDasgupp
My sources tell me that the following are on the list.I dont think there are many surprises.
Merton,Streatham,3 in Kent - Will check,Reigate,Finchley.4 In Cornwall - will check. 6 in Scotland. Info is being drip fed but will update as it arrives.The Managers of these stores will know from lack of investment plans and of course the bottom line of the P&L.
Published prior to March 2014
By Anon
They have had to say this because the 40 store closures in 5 years is almost done in 2.

I expect that the sell off is pretty much on the cards - its only one level up from selling off single stores to selling off the lot.

To be fair it would be better sold off - presently you have a 1 in 4 chance of your local store closing - if HQ are to be believed?

Staff will be unsettled - nothing new there I work for them - every year there is something to cause worry.

The issues are this - without the showroom section Homebase will have gone bust years ago. There are whole areas that need to be chopped. My suggestions are:
Paint - no real profit and space wasting - labour wasting.
Tiles - not enough in store for a real DIY job - make that online only.
Lighting - priced too dear.
Curtains and linen - not much of a range -expensive.
Wood and timber - make it cheaper or get rid.

Plants are good but how many times have you seen them reduced - regular customers now know when they are to be reduced and don't buy till then.

Staff wise prospects are pretty grim - below management level - colleagues as said before are nothing but cannon fodder - best viewed as temp jobs now.
As for Liberation - dont get me started on that farce.

I expect all the full time roles below management will go part time at somepoint with stores having realignment processes to change contracts.

Homebase is a bits and pieces store - cactus and Kitchens on sale in the same place!
Published prior to March 2014
By Jake Howe
There will clearly be more than 25% of stores closing under the latest plans.

Less stores means higher operating costs for each store remaining (to pay for head office overheads, national advertising, higher supplier product prices etc).

Anyone looking at a UK population map will see that the vast majority of the UK's population live within 10 miles of one of the top 40 populated cities in the UK....and with on-line presence there is just no need for stores in smaller towns such as Ledbury, Barnstaple, Camborne or Armagh

You could quite easily run a national chain on 80 stores (as Homebase did in their glory years before they purchased the run down Texas chain)

I can confirm there is no closing list, everyone is potentially under threat....every store will be reviewed and every offer considered.....after all they did let themselves be bought out of the Kensington site earlier this year....no store is untouchable.

"The Range" continue to meet with Homebase landlords to take over stores where possible....expect to see at least as many stores close, to be re-opened as "The Range" in the next two years.

Homebases decline is less about price in my opinion, more about pathetically low stock densities, causing numerous out of stocks, a terrible range and a very poorly managed Garden Centre and Seasonal offer
Published prior to March 2014
By Writting was on the wall
Anyone know of the full list of stores closing
Published prior to March 2014
By anon
Now that the news has finally confirmed that 25% of homebase stores are to close I can again confirm the store on rope walk will be the one closing due to not making as much profit/sales as the larger of the 2 stores in Bedford
Published prior to March 2014
By Anon
About time Headoffice came out and told everyone what stores are closing. The fact it's all over news again that more stores will close, will just unsettle staff. People working in these stores claim to know the facts but truth is the only people who will know for sure is the people making that choice. http://m.bbc.co.uk/news/business-29719512
Published prior to March 2014
By profit
Good numbers , sad to see more close but makes sense.
Published prior to March 2014
By IsItTooLate
As an ex employee of homebase its very sad to see whats happening to it. Prices are Far too high and stock levels at the depots are very low. Customers ask have you got this in stock? sorry NO but we can order it in 3 days YEAH RIGHT more like 3 WEEKS. LIBBERATION what IDIOT came up with that idea some kid at head office!! . Im afraid customers VOTE with their FEET how long will it be when we see NO STORES AT ALL.
Published prior to March 2014
By Anon
I went to a Liberation Huddle earlier this year and the store manager told us that our store's lease is up in the next couple of years and that by next year it will be decided if HB will want to renew the lease or not - taking into account profits, refit costs rent level and so on, but with Liberation you have to make a profit and an extra 3% on the previous years profit - if that was just region or comapny wide was not stated, so conditions are laid down that even profitable stores are unsure of the future.
Published prior to March 2014
By H O' Mebase
Leyland is one of the 13 store leases sold to the Range. They wanted it. Homebase wanted rid of it. Low turnover and insufficient profit potential since the day it opened. Any store that trades at a similar level is at risk as HB looks to drastically reduce the number of sites.
Published prior to March 2014
By Anon
Sorry to hear about your hours being slashed from 45 a week to just 4 (is that 4 a day or worse a week?) - replen at my store is a couple a nights a week so is that the case with you?
My advice to you and everyone else - treat working at HB as a temp job with at worst work for the next 4 to 5 months unless you have been told of closure. Best bet is if you want more work try temp agencies and the likes of Aldi Asda and so on and it goes without saying think of yourself if you are offered work on the same night as a HB shift chuck HB do that instead this, it goes agrainst the grain but HB are the exception to this- stuff HB as they care not one jot about your your finanaces or future anything - you are cannon fodder no more - unless you are one of the brown nosing bosses creeps or worse (you don't want to know what that means - trust me).

When you need help from Homebase they will let you down - I know this for sure.

As for the Bed SJ - lets hope your right - but no store is safe the company is under review!
Published prior to March 2014
By magie thatcher
I have concerns that my local store in wellingborough will be closing. Iv heard the lease is almost up and sources tell me the profit the store makes is small in comparison to others. Any info?
Published prior to March 2014
By anon
I don't know where people get there facts from Bedford SJ is NOT closing, work out front starts in mid October they had a site meeting today bathrooms are being upgraded and money being invested in the store. new store manager starts in 4 weeks he is not temporary. Current SM is very temporary as he is moving to another store an is just supporting for a couple of weeks and got a new deputy who is permanent. Stop speculating an unsettling the team in store its not fair. And trust me I have got my facts right....
Published prior to March 2014
By Anon
The evidence that Bedford st John's home base store is closing is now prolifically correct, they will have new managers in not just one but a whole new leadership, these are just tempory managers up until the store closes, they have also stopped works on the front of store due to the close .

In the next few months the staff they will want to keep will be shipped to other stores while the rest left to the bitter end .
Published prior to March 2014
By Anon
Dunno if anyone else as thought about this one. Argos adverts on telly everyday no matter what, Homebase pretty much 15% days only and the odd kitchen offer - plain to see HRG favours Argos. And Liberation is a strange on why do jobs outside of shop hours - its not as if the stores are ever that busy for the very few customers to mind someone doing a few jobs!
With Leyland Lancs - does anyone know if the lease is up or even if its a lease issue or just a hack an'slash affiar?
Published prior to March 2014
By Jake Howe
Leyland Lancashire, being announced today
Published prior to March 2014
By Anon
You want to work there- everyone watches everyone else - back stabbing is rife - at the huddles you're told sales for the week are up, but cannot see how when the shop is empty - managers banging about getting product insurance storecards cust feedback etc New staff not getting much in the way of training regarding pretty much anything the might be questioned upon by the customers.
I feel the Homebase name will have vanished from the scene within 5 years the question is sold off or shut down?



Published prior to March 2014
By Rodney Trotter
I work for Homebase. And since LIBERATION i hardly get any hours! All my socks have holes in! I used to do 45 hours a week and now there is never any OVERTIME! Im a hard worker, but now im stuck doing 7-11pm only 4 hours and have to stay there till 11pm at night to do replenishment! Aberslute joke how we cant do tasks in the day anymore. Liberation was only a way of homebase saving money. When they are earning way to much anyway! PLEASE END LIBERATION SO I CAN HAVE A GOOD XMAS!
Published prior to March 2014
By spider man
Kitchens way over priced. Appliances likewise. Paint over priced, homeware over priced, plants over priced. Staff pressured to sell at prices so out of line with the rest of the retail sector it comes at no surprise that sales are down. Im amazed they are still around.
Published prior to March 2014
By Anon
Greed has got the better of this company with to high prices how can you shut some stores who are making money,coming near the end of their lease is the answer,big knife in the back of the work force
Published prior to March 2014
By anon
The matter of profits couldn't be more wrong home base make only 2% profit on everything the sell on average, this is after the shipping, cost price, staff wages, rent etc is paid, after many years of cutting back they now have a very shaky home delivery service which pay compensation to most customers this is obviously not included in their 2% profit .

Stream lining the company and cutting back on things will be the end to this company
Published prior to March 2014
By H O' Mebase
Sorry to be negative but the fact a store is profit making or that the lease has been renewed does not mean it cannot be closed or sold. Many examples from the last 12 months prove this. Renewing the lease can make a building more attractive especially if on more favourable terms and is often a precursor to selling. The new occupier does not have to do the lease negotiating and buys into some medium term security. One HB store closed last year 12 months after a new lease was signed. Another one made 330k but realistically HRG want 500k as a minimum to guarantee not closing. I hope for the employees involved I am wrong but don't pin your hopes on leases or profits stopping the inevitable contraction of the business.
Published prior to March 2014
By Falkirk 1956
Homebase Falkirk to go the range opening soon staff been told range won't have them but homebase training them on interview techniques
Published prior to March 2014
By employee
Cannot see them closing tonbridge store as they are a profit making store, they have recently renewed the lease and there figures are as good as any store in the region this year
Published prior to March 2014
By anon
New information.........managers and deputy managers are being informed to find any way of getting rid of mid managnent/duty managers to cut wages down in the next few weeks many of them will find themselves in disaplinary or gross misconduct charges....
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