Bunnings' takeover of Homebase costs Habitat £18m
Published: 30 November 2016 - Jenny Wonnacott
Furniture retailer Habitat has posted positive turnover figures for its year ending February 27, 2016, but has revealed an 'exceptional items charge' of £12.4m, resulting in losses of £18m.
A total of 70 Habitat concessions were removed from Homebase stores following the DIY retailer's takeover by Australian company Wesfarmers
This was in relation to the impairment of Habitat brand intangibles and godwill following the sale of Homebase to Bunnings. The subsequent closure of 70 Habitat concessions within Homebase stores also incurred the losses.
Total sales grew by 15% to £34.9m for the year, with gross profit up 17.3% to £13.5m.
Habitat has since been bought along with Argos by Sainsburys, which has already begun to roll out several concessions within its supermarkets, including its 61,000sq ft flagship store in Nine Elms. Sainsburys says it is committed to opening more Habitat concessions within its stores, with five currently underway, in a bid to grow the retailer's presence following the closure of the Homebase concessions.
During the financial year, Habitat launched a new website and complieted a £1.5m refurbishment of its Tottenham Court Road 25,000sq ft store.