Homebase to cull 25% of stores by 2018
DIY superstore Homebase has announced that it will close 25% of its stores over the next three years, cutting thousands of jobs in the process.
The company, owned by Home Retail Group (HRG) will reduce its 323 stores by 2018 due to “inconsistent store operating standards” and “a large estate with low sales densities that result in a challenged financial model.”
Managing director Paul Loft is also set to lose his job as news of the closings came about.
A digital makeover at Argos has helped boost HRG profit by 13% in its underlying first half and the retail outlet’s Christmas trading will influence the group’s full-year result, HRG has said.
Switching from its classic catalogue towards an online click and collect system seems to have worked wonders. Its mobile and tablet device sales grew by 45% while Homebase’s like-for-like sales increased just 4.1% over the six-month period.
Chief executive at HRG John Walden said: “Homebase will pursue a three-year plan through to the end of 2018 to improve the productivity of its store estate, strengthen its propositions and accelerate its digital capabilities by leveraging Argos’ investments.”
"This will position Homebase as a smaller but stronger business, ready for investment and growth."..