Bunnings parent company Wesfarmers, which bought Homebase last year, said its first-quarter sales slumped 13.8% to £276m in its UK and Ireland business.
During the period its like-for-like sales also fell by 11.9%.
The Australian firm said the decline was due to “difficult trading conditions” throughout the three-month period as well as the continued large-scale clearance of discounted stock from its remaining 244 Homebase stores.
The UK’s first Bunnings store opened in St Albans, Hertfordshire, in February, and there are plans to open 15-20 more by the end of this year through a combination of Homebase conversions and newly acquired properties.
Its latest store opens today in Worle, Somerset, on the site of the former Homebase at the Queensway District Centre.
Emily Stella, senior retail analyst, GlobalData, said: “Bunnings’ entry into the UK has been bold: the retailer removed home furnishings ranges from Homebase, and has only executed eight Bunnings pilot stores to date of a 244-store estate (with two Homebase stores currently undergoing conversion).
“Bunnings has also halted installation and in-house planning services, and temporarily withdrawn its online offer.
“So far this strategy hasn’t paid off, with Homebase/Bunnings last year logging its lowest sales over a 12-month period in seven years.
“While Bunnings has been slow to roll out its eight pilot stores, the retailer has effectively turned existing Homebase stores into Bunnings stores, minus the branding.
“This has left Homebase consumers confused, and has likely contributed to the reported decline in footfall as Bunnings fails to attract new customers to counter the loss of loyal Homebase customers.”
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