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 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....
Published prior to March 2014
By bill
I know that people will be out of a job but the managers will be free of the bully regional mangers I know from my 20 years of being a manager in the north west
good luck to the people who lost their jobs
Published prior to March 2014
By David Price
Lets be honest, Home Retail are very sly people and I bet they have way more closures earmarked than are letting on, my money is on about 150 stores at least, once that is done it will make the company more profitable and they will then sell!
Published prior to March 2014
By Mr H.O'Mebase
Llandudno closure confirmed this week makes a total of 36 stores mentioned in the posts, officially announced or yet to be officially announced as closing this financial year. This leaves 287 if all go to plan. Still time for even more announcements as HB not yet at halfway point of 14/15.
Published prior to March 2014
By Jake Howe
I suppose it is no surprise that "The Range" have taken over the lease of the Plymouth Peverell store and will flatten the site and rebuild. No surprise because Plymouth is where "The Range" head office is situated. More of a surprise was that they have not taken on the site at St Austell Homebase which is also closing but going to a discounter....would have thought the range would have liked another site in The South West.

Meanwhile as previously speculated, The Range continues to look at more Homebase sites. With Homebase essentially now "up for sell" a meaner and leaner company will be far easier to sell.....my favourites (and this is just my view) is Terra-Firma, the venture capatalists
Published prior to March 2014
By Anon
St John's is the smaller store. Cannot see an Asda store going on that site, the carpark is far too small.
Published prior to March 2014
By Anon
Not sure if that is the correst connection to make with Focus but the bonuses of part time contracts are - holiday pay is low, they only have you in (overtime) when they need you - holiday cover, peak events or layout changes, and of course redun pay is going to be lower.

Looking at how things are going the Range pretty much does what Homebase does but cheaper except for Kitchens and Bathrooms, Timber and building cements and the like - these are done cheaper and better elsewhere anyway.

The Ranges customer service might not be that good but nowadays prices wins over being nice to customers as you can plainly see - Range opening stores - HomeBase cutting jobs and closing stores
Published prior to March 2014
By Wendy
i've just read about the staff hours for colleagues new to Homebase being part time this happened to staff new to Focus DIY as well near to the end of the business so is the writing on the wall for Homebase ?
Published prior to March 2014
By LOCAL GOSSIP
through the grape vine homebase Barnstaple is moving into the argos extra and the range going into the old store?
Published prior to March 2014
By Base worker
The staff at Homebase St Austell were told that there store was closing and had been sold to B&M. I feel so sorry for the staff in the stores, they put so much in to get treated like rubbish, The place to save vast amounts of money is up hear at the Base, we're there are 3 people doing the same jobs, you could stop closing stores if this was done as they would then make profit A real Shame
Published prior to March 2014
By Just a matter of time
Llandudno entered proposal for closure today
Published prior to March 2014
By H.O'Mebase
Grimsby opening of the range has now been put back to later in the year. Homebase will still close on schedule.
Published prior to March 2014
By inside scoop
We can now confirm st John's home base will close in November, the first signs will be the removal of branding on the front of store in the next month
Published prior to March 2014
By anon
The staff in both of the Homebase stores situated in Bedford should and need to have the rumours offically denied or confirmed in regards to which store if any will close, when and if reallingment will occur.
Published prior to March 2014
By H.O'Mebase
Grimsby HB store will close on 20th Sept 2014. This is the first one of the 13 stores purchased by the range to go. The range will open on Fri 31 October. Still awaiting confirmed closure dates on the rest but looks like Sunderland and Plymouth stores which are not part of the range deal will be the next to close.
Published prior to March 2014
By Anon
new store staff below management level are part time - team leaders are usually full time but there are some part time team leaders. management are full time
Present full timers are ok unless a store goes into realignment then their present contracts end and they may be given a new part time one if they stay with homebase.

There is some overtime depending on what your role is, budgets for the store and if additional bodies are needed for a given week.
Published prior to March 2014
By penny williams
does this mean that the shop floor staff only get part time hours now and only management get full hours to work ?
Published prior to March 2014
By A non a mouse
The larger of the stores as in the one by at John's?

This would make sence as they are redoing it all up and I've heard that asda has brought the property and this is why the developments are happening, they will make the homebase store into an asda once all work is finalised and that seems to be November.

So I can say its probably the at St. John's homebase.


This also ties with the re development of the town centre as the whole area is being done up.
Published prior to March 2014
By Anon v2
I would love to know where some people get there info from
Published prior to March 2014
By Anon
Its means the store roles and staffing levels are changed according to a deployment model which decides on hours and days to work in your contract, depending on how flexible you are too, not forgetting liberation meaning jobs done outside of the 10 - 3 or 4 window - but the most important part is any full timers will now be offered part time only because full time is only management level upwards nowadays
Published prior to March 2014
By In form er
They are set to close the bigger of the 2 and will then go through what they call re alignment (don't know what that means) and then from the 2 stores the best if each role in store will be picked. So all in all they seem to be making both stores staff reapply for their job and whoever is best they keep the other redundant
Published prior to March 2014
By Anon
Seeing the so called 'press speculation' and how the company sent down on the Hub to stores an announcement from John Walden which didn't deny the notion of HRG selling off Homebase but instead said if we change strategy, structure or priorities we will update you before disclosing to any media.

The old saying - no smoke without a fire comes to mind!
Published prior to March 2014
By employer
Yes but which one as there are two stores in Bedford??
Published prior to March 2014
By North Hampton
Can anyone confirm if either of the two stores in Northampton or the one in Wellingborough are closing?
Published prior to March 2014
By In form er
The Bedford store is set to be closed November.
Published prior to March 2014
By homebase employee
Is this store closing down or the riverfield drive store? ?
Published prior to March 2014
By Jake Howe
Store to close, to be taken over by "The Range", this is a very old established Homebase store........as I said in a previous post "The Range" is looking at considerably more sites in The Homebase estate....My guess is the Homebase estate (if not sold) will, within 5 years, be closer to 100 sites in total
Published prior to March 2014
By David Williams
We can now confirm that The following stores in Kent, will be closing within the next 12-14 months
Tonbridge Kent
Canterbury Kent
Published prior to March 2014
By Jake
Kirkcaldy in Scotland is the next store to be taken over by "The Range". Sad to see that Homebase could not even make a store work for them when it is on the same retail park as a high football Sainsburys supermarket.
Published prior to March 2014
By the informer
yes homebase at riverside to close when lease runs out 2015
Published prior to March 2014
By homebase employee
Does anyone know whether the smaller bedford store is closing down or not in reference to a previous comment
Published prior to March 2014
By mary b
Its always sad if jobs are lost . Good luck to everyone this affects .
Published prior to March 2014
By Jake Howe
Don't blame me, blame your incompetent board at their failure to turn around a once great company.....no staff on the shop floor, very low stock density (not nearly enough to complete most DIY projects) and a shocking garden centre offer are what's led to the decline
Published prior to March 2014
By Mr B
Does anyone know if any Homebase stores in Kent are going to close?
Published prior to March 2014
By Mr H Base
Burnley = Confirmed

Preston Queen Street = Confirmed

Leyland = Confirmed

Stockport = Still in process of closing, (Closure is mid to end of August)

Southport will go soon once Sainburys get the site build date

Other stores in the Northwest that may go next is Aintree and Horwich, Horwich is already in talks with the range and next (as someone has mentioned in a past post)



Published prior to March 2014
By disappointed Homebase
Jake Howe you have ruined my life thank you very much
Published prior to March 2014
By comfired
homebase Plymouth (peverall) is closing end of September
Published prior to March 2014
By Anon
Does anyone know what stores are closing in the Bedfordshire area?
Published prior to March 2014
By Jake Howe
Burnley store to be closed....and surprise, surprise, "The Range" is taking on the site.


...I heard today that "The Range are looking at in excess of 90 (YES NINETY) Homebase sites....now that does not mean 90 stores will necessarily have their leases ended to be taken over by "The Range" but it does possibly mean that "The Range" are much more aggressive than first believed
Published prior to March 2014
By Jake Howe
Store closing....yes you have guessed it, "the range" are taking over
Published prior to March 2014
By Anon
So if 40 have closed or will close so far - is it a case of carrying on closing stores for 5 years meaning it will be more than 65 for sure or will they stop at 65?

Makes you wonder what HRG is upto.
But to be fair Homebase is too expensive with 15% days being the only times the stores are really busy.
Published prior to March 2014
By Jake Howe
Please note I posted the information on Taunton, but NOT on Plymouth, it looks like someone else has used by name !

I did say Plymouth is likely to close in a previous post but have not heard this as confirmed. I would also add that the old Plymouth store has an extremely low rent so is less of a "burden" to Home Retail Group, but it is a very different type of store in an ancient building which does not fit the "feeling" of most of the rest of the estate.
Published prior to March 2014
By Jake Howe
As I said in an earlier post,it has now been confirmed that Taunton store is closing....to be taken over by "The Range"
Published prior to March 2014
By jake howe
homebase Plymouth (peverell) is due to close in October with the loss of 28 staff..possible extension on lease fore 12 months waiting fore confirmation
Published prior to March 2014
By Mr H O' Mebase
Let's stick to facts rather than speculation everyone! Since my last post the number of actual announced closures for this year has increased by 1 to 22. Less than 2 years into a 5 year plan HB will already have disposed of around 40 sites - their stated closure total for the full 5 years. 310 stores is therefore incorrect as the total will be down to 301 by the end of September. By the end of financial year 14/15 in February we might see more activity as I think we can all see where this is leading but let's report the facts and comment accordingly?!
Published prior to March 2014
By Bonds
I do feel sorry for all those affected, but also not sure why anyone is surprised. Homebase stated in the original story in 2011 that they are looking to close 40 sites over 5 years taking them to around 300. So far they are at 323 another 13 announced this year will bring that down to around 310 by the end of of 2014.I suspect some more next year to bring the chain down to 290 ish. I think they are more likely to look for around 250 but that is my speculation based on nothing more than gut.In essence they have been up front about this since 2011 just not nice when you are affected. If it means 250 invested stores like Worcester and they make profit and safe guard employment for the remaining employees then it is a good move just in that transition people are always affected.
Published prior to March 2014
By by its a joke
Thanks for the reply jake howe ,I dont really care who u work for but where ever ur getting ur information dont u think somethings are worth keeping to urself personally I think ur an employee disclosing private info maybe im wrong but wats best for buissness right ?
Published prior to March 2014
By Jake Howe
Another store set to close

Previous poster, please read through my previous postings, have I been wrong about any of my postings? Feel free to challenge me, but at least read what I said. I just posted that the range are after the Barnstaple site...it's their number 1 target store, believe me or decide not to believe me, that's your choice. Not sure wihy you need to know who I work for? Please man up yourself and tell us all your real name...you never know I might know you....or I might not.
Published prior to March 2014
By its a joke
I would like to take this moment to ask mr how to man up and admit who he works for and tell us where ur getting ur info !as a current member of staff and a former employee of the Barnstaple store I think u need to get ur facts straight pal and stop clutching at straws lol
Published prior to March 2014
By Jake Howe
Sunderland Homebase store is closing, to be taken over by "The Range"....who are very keen on other Homebase store sites. I mentioned Barnstaple in an earlier post, that's a key target for "The Range", who are based in Devon....but there are 20 other stores in the Homebase store portfolio that The Range see as target sites.
Published prior to March 2014
By Peter Kennedy
In Ireland Homebase is probably as bad as in the UK. Attempting to contact a branch by telephone is impossible - no-one ever answers.

I say GOOD RIDDANCE.
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