Homebase is set to close 11 stores across the UK as part of a £130million deal with Sainsbury's.
The DIY retailer giant plans to convert these locations into large supermarkets, expanding its reach to nearly 400,000 additional customers.
This comes amid a wave of store closures that have swept the country in recent years.
For affected Homebase employees, Sainsbury's has promised to offer at least an interview for one of the estimated 1,000 new roles created by this expansion.
The closures span England, Scotland, and Northern Ireland, with seven stores confirmed to shut before Christmas and the remaining four expected to follow shortly after.
Simon Roberts, Sainsbury's chief executive, highlighted the company's growth strategy, stating: "Sainsbury's food business continues to go from strength to strength as we push ahead with our Next Level Sainsbury's plan.
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High streets have been hit by a wave of store closures since the pandemic, on top of banks shutting down PA"The supermarket chain aims to capitalise on its market position.
"We have the best combination of value and quality in the market and that's winning us customers from all our key competitors and driving consistent growth in volume market share."
Sainsbury's expansion plans are ambitious, according to Roberts. "We want to build on this momentum which is why we are growing our supermarket footprint."
"Our ambition is to be customers' first choice for food and these new stores will showcase some of the best that Sainsbury's supermarkets have to offer to even more communities around the country."
The following Homebase stores are set to close:
- Birmingham Sutton Coldfield
- Bromsgrove
- Cromer
- Derry/Londonderry
- Fareham
- Inverurie
- Lowestoft
- Newark
- Omagh
- Rugby
- Glenthroes.
LATEST DEVELOPMENTS:
Customers of the DIY chain are being warned about upcoming closures
PASome locations have already begun advertising 'Everything Must Go' sales with discounts of up to 60 per cent. Despite these closures, Homebase will continue to operate around 150 stores across the UK.
However, the company is facing challenges. Managing director Damian McGloughlin recently informed suppliers that trading is 'behind where we planned to be'. Sainsbury's, which already owns Argos and Habitat, reported £137million in post-tax profits for the year ending March 2024.
Lisa Hooker, Leader of Industry for Consumer Markets at PwC UK, commented on the changing retail landscape: "It's clear that online retail is here to stay, outpacing physical stores annually." She emphasised the importance of brands understanding their customers:
"As more brands invest in data and really understand their customer, new space increasingly seeks to meet customer trends for convenience, ease of access and fun."
