Homebase seeks new owners to drive next phase of growth

Hilco, which rescued Homebase from the ownership of Australian group Wesfarmers back in 2018, hopes to complete a deal by next Easter. 

Homebase chief executive Damian McGloughlin told Retail Week said the business was in “the very early stages” of discussions regarding a sale, but said there were “a large number of interested parties”. 

The retailer is emerging from a major turnaround plan, which saw it return to the black after delivering a £3.2m profit in the year to December 29, 2019, compared with a loss of £114.5m the previous year. 

McGloughlin said the home and DIY retailer has also delivered strong sales growth throughout the ongoing coronavirus pandemic.

Homebase plans to invest a further £20m next year into four key stretagic priorities as it bids to build further trtading momentum. 

Firstly, it hopes to build on the more than 10,000 new product lines added in the last two years, introducing new and expanded ranges by working with brand partners.

It also plans to build on the £27m investment already made in its stores to create new layouts and concepts, including ‘Get the look’, which will enable customers to shop an entire room’s products on display in store. 

Secondly, after announcing its 10-year partnership with The Hut Group in September, Homebase is looking to revamp its website ready for customers to use by Easter next year, including offering room planning and specialist advice from Homebase employees. 

The retailer is also planning to open 15 new stores in the next few years, as well as building on its trial of smaller concepts Decorate by Homebase and the Bathstore and Kitchens by Homebase showroom.

Finally, Homebase is committing to investing in its team by supporting training and personal growth. It is also seeking to support more local community projects across the UK and Ireland.

McGloughlin said: “I couldn’t be prouder of what we have achieved, and the agility of the business and resilience of our team through an extraordinary year.

“The Covid crisis brought with it a mix of challenges and opportunities, which have broadly offset each other, meaning we’re finishing 2020 in line with what we set out to achieve right at the start of our turnaround journey.

“As we look ahead to 2021, I’m so excited about the growth plans we have, to cement our position as the home and garden experts and provide a one-stop shop for the products, expertise and inspiration our customers need to refresh or completely transform their homes and gardens.”