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 Chris Sammut
To all those effected. I understand well. Who is looking for what to do next, I might be able to help you guys. I started my own business thanks to a very great company. 07940418212, if interested. It s all over the UK and global round 150 countries. Good luck
Published prior to March 2014
By Anonymous
Staff treated like rubbish with these closures maybe they should make some of the big bosses redundant then they will know how it feels. Glad im leaving this company
Published prior to March 2014
By mark
Homebase in Bolton is closing. Not Homebase in Horwich
Published prior to March 2014
By Mike
Just heard that my local store in horwich bolton is to close, seems ironic as every company who has occupied that building has failed.
Published prior to March 2014
By Lana Richards
I've phoned Homebase Reading Calcot for information on some ceramic tiles for my bathroom and i wanted blue ones he said they had some in stock so i asked how many have you got he said about a dozen so i asked him are you getting anymore he said they are not getting anymore stock in because they will be closing down November 30th
Published prior to March 2014
By flickflack
all you people saying homebase is expensive ought to look a bit closer. they always have good reductions on loads of things at different times, and I think their discounts are genuine
Published prior to March 2014
By sam morone
After a big fire at the Homebase Liskeard I wonder ifthis is one more store they can add to the list of complete closures, with Argus within Mtrs what they could do is sell both, and the residents could have a decent superstore.
Shame about all the job losses, but Homebase prices were well over the top
Published prior to March 2014
By jfu
I work at one of the homebase stores due to close this october, I have heard that the staff are to get a 2 percent pay rise wow an extra 12p per hour, but dont get excited, staff are going to loose the bank holiday and sunday premium pay! So for example if a member of staff works 6 hours on a bank holiday or sunday they loose 17-64p per day, so you either loose your job or lot of money.I will never step into another homebase store.

Published prior to March 2014
By Jake Howe
Looks like the store in Camborne, Cornwall is on the closure list now and also Plymouth (the one in Peverell) is looking in a very sorry state and with leases up for renewal shortly will probably close. Not sure exact dates.
Published prior to March 2014
By jake
In response to amy's comment 1-8-13 you must be a customer because if you were a member of staff, like hundreds of us waiting for our p45's you would be very worried and of course we do sell the same as argos, after all we are owned by the same company(home retail group) just think before you engage your brain..
Published prior to March 2014
By unemployed
Well its official store in region 4(northwest) is to close and some staff have been notified by txt thats the homebase way.disgraceful
Published prior to March 2014
By Rachel
I work in Eastleigh store, Hampshire...
We've just been told today that we will be closing nov 23rd..
Sign of the times ....
Published prior to March 2014
By Anon
I work in a South East Store in NW London -our lease is up in 3 yrs time, we have had surveyors round & will be torn down & replaced by housing. Have been told today that the Sales Manager & Service Manager jobs are being axed with one overall job replacing them both - it's disgraceful.
Published prior to March 2014
By Helen Shakeshaft
my son works for scs in aintree and they are being told that the homebase will be closing soon and that someone else will be moving in, such a shame as i like shopping there.
Published prior to March 2014
By david white
i am really shocked that they are closing so many stores as i always found them to be so useful and clear on finding what you are looking for , such a shame
Published prior to March 2014
By H
Reading Calcot will close within the next 16 wks there lease runs out in November It has got very poor and all the best staff have left even the ones who have been there more than 10 years and they have never got what i want maybe they not getting the stock in so much and they are making do with the old stock, Plus they already knocked the other building near the store which has been empty for 15 yrs back in march to start building the ground work for the massive IKEA car park and they will build the store where HOMEBASE ,CARPET RIGHT and a BOWLING ALLEY are on. We have got another one in Reading but its on the other side of town. IKEA is the Future now down there.
Published prior to March 2014
By N /a
I am also going through redundancy consultations as news of my store Cwmbran closes on 12th October. End of an era after many happy years working there. Very sad day then we leave:(((((
Published prior to March 2014
By RobinDasgupp
As previously published the Stores on short leases and not making GP are to close.The communication channel though to staff is appalling.For example Reading Callcot will be demolished to make way for the New Ikea.The staff are not clear on when it will close although Ikea have plans in place !
Homebase have lost thier way and the offer is diluted and confusing.The staff feel unloved and a lot of smoke and mirrors exist giving the false illusion of a "customer facing" business.The customer service levels fall well short of what the business eludes to.The kitchen and bathroom offer is tired and the consumer is no longer falling for the invented "discounts" on offer.The original 10% days which years ago were successful have now turned into "15% off" weekends which erode profit and are so frequent they are expected.A sad demise of a once respected business.
Published prior to March 2014
By jason
Homebase canley is closing down.the current management will not find it hard to get new jobs as deals have already been given to them.46 members of staff will lose there jobs.only 1 member of staff will remain as they are the managers favourite.
Published prior to March 2014
By Amy
Personally - I don't see the point in Homebase anymore. They are exactly the same as Argos (home and furniture wise) and too expensive with anything else. All of their plants are dead in the garden centre too! Even dead plants are expensive!

The worst thing is they don't display products correctly or even in the right place. Causing damages and low sales of certain products.

They aren't trying hard enough to win business. And quite frankly - they don't deserve it
Published prior to March 2014
By ricky
it looks to me that Homebase has had its day and other similar companys are biting its apple , i have notice that they are over priced on a lot of items and competition is heating up
Published prior to March 2014
By Matt
I actually work for a homebase store in Region 4 (Northwest) obviously I'm not going to mention which one but I've found out that our lease is coming up in November this year, now as far as i know word coming from the store manager is that they are hoping that the landlord reduces the rent before they sign another lease, however this is becoming quite a worry now and they other day we had people in taking photos and measurements of all the building, apparently they where from head office but they didn't look like they where.


Published prior to March 2014
By bob brown
i've heard yesterday that Carpet Right next door to Homebase is closing Dec 13th 2013 so i guess Homebase will close around then to.
Published prior to March 2014
By Jake Howe
Homebase owns the sites for less than half a dozen stores

Having spent a silly amount purchasing the company, and an even sillier amount putting in mezzanine floors, the home retail group have cut capital spend in homebase to a bare minimum in recent months.

A year ago he company was talking about how Maidstone was the new format store, now Battersea seems to be the new format !

Rumours are hat Battersea is showing sales growth following their refit, but nowhere near enough for this ornate to be successful nth verge 50k a week store out of London.
Published prior to March 2014
By The one
I work for homebase (can't say which one ) our store makes the weekly budget more often than not , I will add one thing though if homebase was struggling then why are HRG still throwing money investments at stores :) plus does anyone actually know how many homebase stores are owned or leased more like stores closing not being renewed lease wise
Published prior to March 2014
By Jake Howe
3 more closures announced this week in Ireland. The Irish chain being put into the uk equivalent of administration.

The 12 remaining stores all have leases of at least a year remaining. Land lords being told now if they do not reduce the rents then the Homebase will close in that location.....some sites in the homebase estate in Ireland, especially those around Dublin, remain good sites for other retailers will show interest so its not looking good for the long time future of homebase Ireland.
Published prior to March 2014
By Dave
Wanting credit from suppliers for items is the most stupid thing i have heard. If a store gets a product back from a customer it must go back to the supplier if thats the agreement. You can not re-sell it. Why would a company want credit then buy the item back in!!
Published prior to March 2014
By Vendor Rep
When items are sent back for return, are they realy faulty?, or are the stores just wanting credit?
Items I pick up say faulty on the returns label but have clearly NOT been used!
You should see the amount of Lawn mowers coming back! I counted twelve from one HB, all the same make! And all suspiciously looking new.
WHAT IS GOING ON?
Published prior to March 2014
By kayleigh
I work for one of the stores in the South East (can't say which one) but management are putting more and more pressure on staff to reach sales targets, which is virtually impossible some weeks as the store is hardly ever busy except when 15% off weekends are held. Have a horrible feeling it will be one of the stores to close, such a shame as all the staff are lovely, shame the big shots in the company don't see fit to tell staff in advance on whether their jobs are safe or not.
Published prior to March 2014
By Vendor rep
Aldi has acquired the B&Q site in Rye Road (Ore), Hastings. It is in the planning application stage to re-develop the site. This information is available from the local Hastings press.
Published prior to March 2014
By Steve
I work for one of the Homebase stores in the North West and I've been told by my manager that there's going to be very big cuts coming very soon, be it store closures or loss of service manager positions or more.

I know that Preston Queen Street and Liverpool Aintree are hanging in the balance as they are not hitting budgets.

The Southport store has been sold to Sainsburys which are still in talks about the land, all the staff are being made redundant afaik.

It's disgusting how they are treating staff by giving them minimal notice before closures, They are currently reviewing the loss making stores and have only just re-newed leases for another 12-18 months on some stores which kind of sets alarm bells ringing.

Everyone is correct, they are so behind the times they couldn't manage to bounce a ball let alone a company!, they are currently rolling out "prism" which is a internet based system where you can pay for things online and collect instore however the store does not see any money and this affects store budgets each week so kinda shoots themselves in the foot yet they still expect use to hit budget, they don't advertise enough so how can they expect customers to set foot in the door.

I do hope that if stores are closed down that they are either turned into Argos outlets with staff kept on or purchased by other companies who also keep the staff as in this climate it's very hard to find work.
Published prior to March 2014
By Mrs Cranfield
I have read a lot of comments on here and it seems to me that Homehase has had its day and its time for a change They may go into administration or be sold to someone else HRG will wash its hands of it soon
Published prior to March 2014
By Jake Howe
Southport

Maidstone

Rumours being that mor than 100 stores are now in severe sales decline (double digit on last year) after a truly dreadful sales performance

Went into a local homebase store today and in the first aisle was paint, CDs, hairbo sweats, dead house plants and light shades.......pretty sure the board of directors are panicking,
Published prior to March 2014
By Vendor rep
I visited this store recently and a member of staff said the store will close on the 21st of June 2013. The site has been sold to a property developer.
Published prior to March 2014
By Rachel
It's now been confirmed that eastleigh store will be closing. Ths is due to happen in feb 2014
Published prior to March 2014
By Sandra
I thinks its really helpful of you to share your knowledge of the store closures, have you heard of anymore yet to come?
Published prior to March 2014
By Kylie Cowling
Does Jake Howe Know when HOMEBASE Reading Calcot will close down to make way for the new IKEA Store to be built as i do shop there often and will have to go to the onein Kenavon Drive Reading
Published prior to March 2014
By Jake Howe
....I have been criticised on here recently for previous postings.

I ahve heard today that Shrewsbury Homebase is going to close next month. If you know differenet please reply and tell me I am wrong and I will happy to take the posting off.

More store closure announcments shortly I am afraid
Published prior to March 2014
By jodiie
Anyone know anything about the Eastbourne store?
Published prior to March 2014
By michelle cavell
I go in my local Homebase store in Doncaster and find the products are well priced and always got what you want , Does anyone Know which stores are set to close this year ?.
Published prior to March 2014
By Tara clark
I've just heard my local HOMEBASE in Reading will close November 30th This year such a shame as its the only DIY store in that area and the staff are friendly always
Published prior to March 2014
By hue james
i wonder how much notice homebase will give staff before stores close down i expect the min as they prob dont want there staff to leave before hand
Published prior to March 2014
By john
Redditch & Worcester bath road will be closing imminently, could be a year or so but they are non profit stores up for lease renewal.
Don't ask me how I know, but I do let me put it that way.
Published prior to March 2014
By RobinDasgupp
As you can see the list I published recently was correct. Its pretty easy really - Stores with leases up losing money and not fitting the Image will be shut.Many of these are tired and old and are out of the demographic.The total closures is forecast at 63 with some changing to Argos.
Published prior to March 2014
By larla gush
I JUST WENT TO MY LOCAL HOMEBASE IN READING CALCOT ON MONDAY TO GET SOME PAINT AND THEY HAVE KNOCKED DOWN THE BUILDING NEXT TO IT TO BUILD THE CAR PARK FOR NEW IKEA STORE , WILL NOT BE LONG TILL THE HOMEBASE STORE WILL SHUT NOW I QUESS
Published prior to March 2014
By I escaped
I worked for HB for 16 years , latterly as a Store Manager. I totally agree that when Sainsburys sold HB it was the begnning of the end. The acquisition of Texas was difficult inheriting many poor stores and staff along with some very good staff. The demographic was totaly different. Customer service now seems atrocious, big big mistake. I still have friends in HB in Senior Management , they would leave if they can find an attractive proposition. I think it'll struggle on in a much reduced form. Sadly B&Q is even worse, service is non existent.
Published prior to March 2014
By Steve Parkin
Having read Mr Howes comments i find rather hard to beleive what he says is true about Homebase might close the store at Barnstaple after they have invested a huge ammount in the garden center and a brand new showroom? Has Mr howe an issue with the company i wonder ? In this time of hardship people being made redundant has he ANY feelings for the staff at these stores who migth see his comments
Published prior to March 2014
By rose wells
i think that kenny needs to read into this before putting load of hear say , my local store in Reading Calcot will go shortly i know the girl on the till is looking for other jobs. Shame
Published prior to March 2014
By Jake Howe
I wonder if Kenny still thinks I am talking rubbish now. This months board meeting confirmed 2 of the per mentioned closures. More on their way
Published prior to March 2014
By the ghost
homebase is going strong and making significant pfrofit
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.
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