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 mrs Azahi
i've just read on the internet that Homebase are increasing their discounts in stores that are going to close , i think i will wait till the last 5 days before closing and get 90% off i think.
Published prior to March 2014
By mr smith
im not a huge fan of Homebase , i brought garden products and paint in the past and have always paid more than say if i went elsewhere, i dont even use NECTAR CARD anymore, closing stores dont bother me really.
Published prior to March 2014
By toni clarke
i heard my local store will close soon , supervisors and staff have started to look for alternative employment and some have found other jobs even the Manager , but they have not taken new staff they have filled there positions with staff from other stores so it cant be HEAR SAY.
Published prior to March 2014
By kenny james
nice to read all the hear say comments and scare mongering by people who havent got a clue!, to put a list of stores that are suppose to be closing without concrete evidence should be backed up with proper evidence.
Published prior to March 2014
By jo r
i worked in a homebase shop and i think its so sad that the internet is taking over and soon there will be NO shops
Published prior to March 2014
By mr bang
i ve heard that seven shops will close this year and a further nine next year from a colleague in my local store , the country will not have many stores left, i espect B & Q will gain sales out of it.
Published prior to March 2014
By Jake Howe
I heard today (from a property developer) that Homebase is "actively looking" to get out of 4 South West sites ASAP either by off loading the lease or possibly just throwing in the towel. Bodmin, Taunton, Barnstaple and Honiton. I used to shop in the Barnstaple store as it had a cracking garden centre, really top notch with great quality plants and staff, the current management team seem not to be coping and last time I went in half the plants were dead, a real shame for the staff in these stores....and the plants
Published prior to March 2014
By kate burns
i just read your article on homebase closing 40 stores and i think that this company does not want to end up like MFI, FOCUS DIY, COMET, and HMV maybe whever or not it will save it from the others is a matter of wait and see.
Published prior to March 2014
By Not Relevant
I worked for Homebase for 17 years until 2005 (Year of the Manager.......cull) When Sainsbury s some years earlier sadly sold them to Venture capitalists the writing was on the wall, a brilliant company destined to fail, it is with great sadness I read of the imminent demise of many of the stores I either ran or was in some way connected with. It is true that the options the HRG at this economically difficult time dictate that this may be the correct thing to do HOWEVER this could have been avoided much earlier when the decision men integrated Texas and more latterly some Focus stores many of which should never have been converted. Market share and dominance seemed more important than the likely value of the estate in say 10 years forth. Many fine Managers were lost and many ignorant senior ones kept, and look where they are now, perhaps they should have listened to the wise ones rather than dismiss them for what in hindsight was relevant advice. I rest my case and hope those affected can find suitable employment elsewhere
Published prior to March 2014
By simon mont
My friend has worked for the business in excess of 15 years and she believes at least 3 stores are scheduled to close in Birmingham area in 2013 due to lease expiring
Published prior to March 2014
By james barlow
does anyone know which stores are closing in 2013 is Reading Calcot Going Thanks.
Published prior to March 2014
By diyman
Homebase needs to get back to simply trading the space in there stores better as Texas homecare did..Stop this Habitat ..expensive superior image..... with focus Diy gone there can be no excuses to not gaining market increase... otherwise directors board needs shake up and more new blood... they wouldnt except management not reacting in poor performing store ?
Published prior to March 2014
By julie sutton
i just read in the paper that the HOMEBASE store in HEREFORD is to close down january 19 th 2013 and the staff are having meetings to see if ther will be any alternative employment for any of them with HRG.
Published prior to March 2014
By el
Store is gone there. shame as i found the few staff there helpful.
Published prior to March 2014
By Robin DasGupp
Reading C.
Blackheath.
Merton.
Taunton.
Tonbridge
Two in Ireland
Liverpool
Two in Birmingham
Published prior to March 2014
By samuel mans
i only ever go in HOMEBASE twice a year as i do find the staff a lot less friendly and helpful than B&Q ,B&M HOMESTORES, and WICKES maybe this is to do with staff training . i am not surprised at all that stores are closing really.
Published prior to March 2014
By craig whitely
i heard from a member of staff that the Reading Calcot store as already shut down this week , staff are in there to tidy up the loose ends. the lease runs out in 2013
Published prior to March 2014
By Rachel
I believe the lease is up in feb 2014,
Time to start looking else where now :(
Published prior to March 2014
By bob brown
when the lease expires in 2014 , most likely the store will close at the end of the tax year usually in march that year
Published prior to March 2014
By debbie scofield
my experience in HOMEBASE is that they do sell a lot of old tack which takes up a lot of space in your house but i find B & Q and WICKES are more your DIY STORES that improve your home.
Published prior to March 2014
By Rachel
Tge store I wirk in will be closing in 2014 when the lease expires, I was told that all stores where the lease us set to expire in the next few years will be closed, turns out to be around 65 stores!
Published prior to March 2014
By david black
i think HOMEBASE reason to close 40 stores within next 5 years is because they do not want to end up in a black hole like other retailers FOCUS DIY , MFI , COMET who's fate was liquidation. The sad thing will be for the worker's who will lose there jobs.
Published prior to March 2014
By Chloe smith
Our local Homebase is being closed in Blackwater near Camberley, there is rumour that they are knocking down the building and replacing it with a Next
Published prior to March 2014
By mrs mangle
I do shop in HOMEBASE about 3 times a year mostly on 15% weekends as i do find them rather over pricon a lot of items against there rivals like B & Q or WICKES .I Think they are doing the right thing in to bring there stores down to 300 but it will be sad for the management and staff in the stores they are closing losing there jobs.
Published prior to March 2014
By debbie
My Friend works in Homebase in the GARDEN CENTRE she been there 15 years and she does not think the store will be open much longer and have not been informed by the company only by what she has read on line and in a magazine. Terrible Really i think
Published prior to March 2014
By rupert conway
Homebase have got NO RESPECT for the workers who will lose their jobs . My local Homebase lease expires in 2013 and the staff are feathe worst, even thinking it will close by april No member of staff have been informed by Head Office yetnot even Management. Disgrace!.
Published prior to March 2014
By pamala wilson
Anybody knows Which stores are to close and when. i do shop in Homebase and find my local shop empty mostly when i go in there thats all.
Published prior to March 2014
By Rachel
I work for the company and have been informed by my local paper that the store is closing and also now on the website.
I think it is a disgrace that the company don't feel the need to share such information with the staff.
Homebase you are a shambles!!!!
Published prior to March 2014
By Richard Pembroke
my local store calcot will close they will build a ikea in its placewhen there lease runs out in 2013
Published prior to March 2014
By kenny james
jake howe, the home retail group which is owned by shareholders purchased homebase not argos!!, the announcement of 40 store closures will be mainly a high percentage of stores coming up to the end of there leases and not due to poor performances based on store turnover obviously this will be taking into consideration when leases of stores will be coming up for renewal also in this current struggling financial climate it is wise for any company to diverse there business for which homebase is trying its best to do to survive the difficult times ahead for which also every business in the uk is at the moment also finding difficult as sadly reported quite often lately many companies are going into receivership and going bust, it would obviously be a better long term business decision for homebase to unfortunately have to make the decision to close upto 40 stores and restructure its selling policy wether it be selling paint,timber,dvd's or even kitchen scales than to close the whole 340 stores.
Published prior to March 2014
By Jake Howe
Argos invested millions to purchase Homebase and Millions more to add mezaline floors to most of the estate. Paul Loft and his team have done a terrible job with year on year sales declines despite competition closing (Focus, MFI etc). Homebase never fails to dissapoint nowadays with low stock levels throughouyt the store and a more than a confused offer....what do they sell now, paint, timber, dvd's, kitchen scales?
Published prior to March 2014
By summer johnson
Not very good even the staff haven't been told yet, but then with thats not a suprise with Home retail group!
Published prior to March 2014
By Paul Wood
Every Business needs to move forward, however it is a great shame that the staff in the business have to find out by reading it here as there has been no internal announcment. This could have been handled very differently
Published prior to March 2014
By Billbo Baggins
Beware everyone who thinks closing down large stores will help the independent. Watch your backs as we saw with the food retailers when they run out of ways to make money from large stores they go back to the High Street. Look at the likes of Screwfix in Shepton Mallet this won't be the last of these. With logistics set up already to supply trade counters whats to stop them entering a High Street near you?
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