Homebase returns to profit and launches new store format

The home and DIY retailer registered a surge in profits to £3.2m during the year to 52 weeks to December 29, 2019, up from a £114.5m loss during the same period the previous year.

Homebase’s like-for-like sales increased 2.6% during the period, which it attributed to the positive response from customers to new ranges, in-store improvements and better online shopping experiences.

During the period, Homebase acquired Bathstore, including 26 standalone stores and 49 Bathstore concessions. The home and DIY retailer invested £10m into stores across the UK and Ireland including 51 refurbishments last December to create new kitchen showrooms, Bathstore concessions and home furnishing departments.

Two of the standalone stores – in Cheadle and Sutton – have been transformed into a new store format, ‘Decorate by Homebase’, and will open just before its peak trading period at Easter.

The new format will stock smaller items used for decorating but with the option to order from its full range digitally for home delivery or to be picked up from a nearby larger store.

Investment in new store formats and its online offering are part of Homebases’s turnaround plan following its CVA in August 2018. 

However, due to its “strong financial performance”, Homebase has been able to conclude the CVA process 18 months early.

Chief executive Damian McGloughlin said: “Eighteen months into our turnaround, we’re extremely proud of what our team has achieved, working hard with our partners to return to profit and lay solid foundations for growth.

“We have a very clear vision for Homebase and we’re excited about the plans we have for the future. We will continue to invest in our ranges, services and team members as we make Homebase the go-to place for the inspiration, expertise and products customers need to take their ideas and create homes they love.”