Home Retail Group has announced plans to cut its portfolio of 316 Homebase stores by 25%.
The announcement follows the release of its half year results, which show Homebase’s like-for-like sales grew by 4.1% in the 26 weeks to 30 August 2014.
Although statistics have improved economically, structural factors continue to affect home improvement retail, including an excess of retail space and the growth of digital competitors, Home Retail Group said.
By reducing the number of Homebase stores by the end of the 2018 financial year, the firm hopes it will be able to run a more productive estate.
John Walden, chief executive of Home Retail Group, said: “Homebase will pursue a three-year plan through to the end of 2018 to improve the productivity of its store estate, strengthen its propositions and accelerate its digital capabilities by leveraging Argos’ investments. This will position Homebase as a smaller but stronger business, ready for investment and growth.”
Tim Vallance, head of UK retail at JLL, said: “Retailers have to be able to satisfy consumers in an increasingly virtual and multi-channel world and this makes the store experience vitally important.”
