In more good news for the employees of Homebase, B&Q has announced that it will buy five Homebase stores in the UK, in addition to the three Homebase stores it is purchasing in the Republic of Ireland.
Following the news in November that DIY retailer Homebase was entering administration, news quickly arose that up to 70 of its stores were to be acquired by CDS Superstores, the parent company behind The Range and Wilko, saving some 1500 jobs.
At the time, this left some 50 Homebase stores and some 1700 employees uncertain as to their fate and whilst Homebase administrators Teneo said in November that there would not be any immediate redundancies and that employees’ wages and benefits would continue in the interim. Just how long that 'interim' period is, will have been of grave concern to those employees whose jobs haven't yet been secured.
However, as it now stands, of the 50 Homebase stores not subject to the CDS Superstores acquisition, B&Q have acquired eight, and talks are underway to sell an additional 10 Homebase retail locations to other retail giants thought to include Wickes and Topps Tiles, leaving 32 of the 50 unsold stores remaining.
B&Q Deal worth £2.5m
B&Q has reached an agreement to acquire five leasehold stores in the UK, currently trading as Homebase, for a total purchase price of £2.5m, which is thought to include some 25,000 square metres of retail space.
Although the deal is subject to landlord approvals there is an expectation that the acquisition transactions will all complete shortly, with the newly acquired stores starting to be converted to the B&Q branding and fit-out from Spring 2025.
The five Homebase stores forming the B&Q acquisition are Homebase Altrincham, Homebase Basingstoke, Homebase Biggleswade, Homebase Leamington Spa and Homebase Worcester.
On completion of the lease assignment to B&Q, the employees at the former Homebase stores will become employees of B&Q.
Graham Bell, CEO, B&Q, said: “We’re delighted to be buying these 5 stores, bringing a total of 8 additional sites to our fantastic store network in the UK and Ireland. We’re determined to give home improvers the choice and convenience they deserve, and to transform the home improvement stores in these locations to fulfil that need. It’s a great way to be starting 2025! We look forward to swiftly concluding these purchases and converting the stores to the B&Q brand and offer, and to welcoming our new customers to the stores and new colleagues to the B&Q family.”
In the 2023/24 financial year, B&Q's annual sales in the UK and Ireland were around £3.85 billion with operating profit falling 8.0% to £555 million in 2023.
However, whilst B&Q stated that demand for 'big ticket' items such as full kitchens and full bathroom projects was currently "weak", the home improvement giant said it had seen positive sales growth in core categories and “resilient” seasonal sales, which it said helped to offset the poorer result for big-ticket items.
Thierry Garnier, CEO of B&Q's parent, Kingfisher, said of the groups recent results and the outlook in the UK, “We remain focused on continuing to manage our costs and cash effectively, and driving further market share gains by delivering on our key strategic priorities. With positive early signs of a housing market recovery, notably in the UK, Kingfisher is strongly positioned for growth in 2025 and beyond.”
By expanding its footprint with the acquisition of 8 of Homebase's stores, clearly B&Q's parent, Kingfisher is banking on a housing market recovery in 2025.
Other Homebase News - Three Republic of Ireland Homebase Stores Bought by B&Q / CDS Superstores acquisition for 70 Homebase stores / Homebase Up for Sale Again / Homebase to Sell Bosch and Neff / Homebase Acquires Bathstore / Homebase Rescue Plan Approved / Wesfarmers Acquires homebase for £340m
