Home retail group CEO John Walden has confirmed that 25 per cent of Homebase stores will be shuttered over the next three years, as part of a three year plan to turn the business around. This has resulted in the resignation of Homebase managing director Paul Loft who has agreed to stay on until a replacement is found. Homebase, like its sister business Argos, will undergo a transformation with the aim of strengthening its digital proposition and reducing reliance on stores. Group sales for the half year to August 30th had increased by 3 per cent to £2.7 billion but pre-tax profits were down by 5 per cent. However, Argos completed the roll-out of its “hub and spoke” network during the period to enable its customers to benefit from same day local collection of some 20,000 products.
eCommerce sales for Argos rose and now account for 43 per cent of sales with the mobile percentage of that total growing by 45 per cent to now account for 22 per cent of all sales. Meanwhile, Homebase saw a 12 per cent increase in its online sales.
John Walden commented “In April I set out my near term priorities for the Group, which included undertaking a comprehensive review of Group strategy and its priorities going forward. In particular, as they relate to Homebase, I have completed this review which encompassed a range of market, strategic and operational factors. The successful delivery of the Argos Transformation Plan over its remaining three years continues to be the Group’s strategic priority.”
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