Homebase

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Homebase Limited
Type Subsidiary of Home Retail Group
Industry Retail / Home improvement
Founded 1979 (as Sainsbury's Homebase)
Headquarters Milton Keynes, Buckinghamshire
Wallington, London
Key people Paul Loft
(managing director)
Graham Heald
(Retail Operations &
Distribution Director)

David Robinson
(Commercial Director)
Bill Adams
(Finance Director)
Sonia Astill
(HR Director)
Jo Kenrick
(Marketing & Strategy Director)[1]
Products DIY Tools
Paint & Decor
Furniture
Homewares
Outdoor Living
Kitchens
Bathrooms
Gardening
Revenue £1.57bn (2009–10)
Parent Home Retail Group
Website www.homebase.co.uk
Homebase store in Antrim, Northern Ireland, August 2009

Homebase is a British home improvement store and garden centre, with 342 stores across the United Kingdom and Republic of Ireland. It is well known by its green and orange colour scheme. Together with its sister company Argos (with 750 stores), it forms part of Home Retail Group. Homebase recorded sales figures of £1.57 billion for the last financial year (2009–10). Homebase made a profit of £41.2 million for the year 2009–10.

History[edit]

Former Homebase logo, introduced in 2002 and used until 2012.

Homebase was founded by Sainsbury's supermarket chain and Belgian retailer GB-Inno-BM in 1979 as Sainsbury's Homebase, to bring supermarket-style layout to the British DIY market. Its first store was in Croydon, opening on the Purley Way on 3 March 1981.

Homebase tripled in size in 1995 when J Sainsbury plc bought rival store group Texas Homecare from the Ladbroke Group plc. These stores were rebranded and converted to the Homebase format, beginning with the Longwell Green store in Bristol in February 1996, with the process being completed by 1999. In October 1999 Sainsbury's bought Hampden Group plc, the franchisee of 10 Homebase stores across Ireland.

Sainsbury's sold the Homebase chain in December 2000 in a two-fold deal worth £969 million. The sale of the chain of 283 stores to venture capitalist Schroder Ventures[2] generated £750 million and the sale of 28 development sites to rival B&Q's parent company, Kingfisher plc generated £219 million. At the time, the chain had 13% of the UK market with 283 stores and 17,000 employees, behind B&Q and Focus Do It All.[3]

Homebase was later sold to GUS plc (formerly Great Universal Stores plc) in November 2002 for £900 million, where it became part of Argos Retail Group. On 10 October 2006, GUS completed a demerger of its remaining two businesses, Experian and ARG. ARG was renamed Home Retail Group, within which Homebase now operates.

In early October 2007, it was announced that Home Retail Group had signed a contract for the purchase of 27 leasehold properties from Focus DIY. The purchase price paid was £40 million in cash. The properties were transferred over the period up to 31 December 2007 and were then re-fitted to the Homebase fascia over the course of several months. No other infrastructure and no merchandise stock were acquired as part of the transaction, although staff in these Focus stores transferred across to Homebase.

In 2012, Homebase slightly tweaked their logo by adding a green circle and changing the green lettering to white.

Supply chain[edit]

Early in its history, Homebase used its Sainsbury's experience to move into using central warehouses from which to deliver its stock. By the 1990s it was receiving the vast majority of its stock into central warehouses, then delivering it to stores. Homebase still receives a few direct deliveries to its stores from manufacturers and vendors.

Nectar loyalty card[edit]

From May 2009 Homebase discontinued its own loyalty program, the Spend & Save Card and replaced it with the Nectar loyalty card scheme, the UK's largest retail loyalty card. The Spend & Save card had been used by Homebase since 1982, and was believed to be one of the first store loyalty cards in the world.[4]

Homebase allows customers to collect and redeem points within its stores, becoming the first national DIY retailer to participate in this way. Although competitors B&Q also have a system for processing Nectar points, this is only available on their website, and even then, points may only be spent, not collected.[5]

TV adverts[edit]

During the late 1990s early 2000s, Homebase used former Men Behaving Badly couple Neil Morrissey and Leslie Ash as a couple. Morrissey and Ash were the face of the brand for six years, until March 2005 when Homebase launched a series of new advertisements created by Abbott Mead Vickers BBDO featuring the new slogan "Make a house a home."[6]

From 2006–2009 Homebase used the song "Love Machine" by Girls Aloud in their TV Adverts. From March 2009 "Young Folks" by Peter Bjorn and John featuring Victoria Bergsman is used, 2009– 2010 saw the transformation of Carlisle railway station one of the most expensive adverts Homebase has produced to date.

In 2014 Homebase released two brand new ads with music specially created by Professor Bobo.

In 2014 Homebase also slightly altered their slogan to "Make your House your Home" and they have also starting using the slogan "Its not home until you've made it you own".

Workfare controversy[edit]

Homebase faced criticism following outrage after a poster from a store in London was released appearing to highlight the benefits of free labour through work experience, often referred to as Workfare. The offending poster depicts a number of volunteer staff at the Haringey branch and is captioned: “How the work experience program can benefit your store. Would 750 hours with no payroll costs help YOUR store?”"

Homebase released contradictory statements, the first stating 'The company is not signed up to the Workfare Programme' and the second that 'we have decided to make no further commitment to the Job Centre work experience programme'.[7]

Neither statement appears to have deterred groups organising protests, with organisers calling Homebase’s scheme a "profit-driven attack" on workers and benefit claimants. Before adding "We hope Homebase will soon join, Wilkinson, Superdrug and more than twenty other companies who have ended their involvement with workfare. However we are prepared for further protests in the weeks and months ahead should they fail to do so." [8]

Homebase Ireland[edit]

Homebase runs fifteen stores in Ireland. On 16 July an interim examiner was appointed by the High Court. Homebase stated the purpose of the examinership was to place the company back on a "sustainable footing".[9]

See also[edit]

References[edit]

  1. ^ "Homebase Management Team". Yahoo – Homebase. Retrieved 25 February 2009. 
  2. ^ "Homebase sale completed" (Press release). J Sainsbury plc. 2 March 2001. Retrieved 21 November 2006. 
  3. ^ "Sainsbury's sells Homebase". BBC News - Business. Retrieved 30 September 2013. 
  4. ^ [1]
  5. ^ "Homebase Scrap Spend&&Save Card and join Nectar" (Press release). Homebase. 16 March 2009. Retrieved 16 March 2009. 
  6. ^ "Homebase unveils first advertising for six years without Neil Morrissey and Leslie Ash". BrandRepublic. Retrieved 30 September 2013. 
  7. ^ "Homebase Twitter Statement" (Press release). Homebase. 9 April 2013. Retrieved 11 April 2013. 
  8. ^ "Protest at Bristol Homebase over 'workfare' row". The Bristol Post. Retrieved 11 April 2013. 
  9. ^ http://www.rte.ie/news/2013/0716/462772-examiner-appointed-to-homebase-ireland/

External links[edit]