40 Stores to close....

Money, investing, mutuals etc

40 Stores to close....

Postby Boro Boy » Thu Feb 08, 2018 7:31 pm

Bunnings the owners of what was Homebase are stating after "poor trading" they are intending to close up to 40 stores: http://www.kbbreview.com/news/bunnings- ... e-Homebase

This is the latest of many announcements of restructuring and closures in the retail markets; something is happening out there...

Thanked by: blythburgh
Boro Boy
 
Posts: 2870
Joined: Mon Sep 15, 2014 5:05 pm
Location: London
Has thanked: 889 times
Been thanked: 1703 times

Re: 40 Stores to close....

Postby William Joseph1 » Thu Feb 08, 2018 7:55 pm

Largely their own fault in this case

Thomas Brereton, retail analyst at GlobalData, commented on the news: “A series of errors in Bunnings’ disastrous UK incursion looks set to force the retailer out of the DIY market in 2018, as the DIY specialist announced a whopping £454m impairment charge and a pre-tax loss of £97m for the six months to December. It has begun a review of the business, which will conclude in June, and while it is weighing up a number of options, it appears that Wesfarmers’ ill-considered policies have backed it into an untenable corner.

“Paying £340m for Homebase in February 2016, Wesfarmers had initially planned to transform the 260 store network into Bunnings stores, following the success in Australasia. However, the rapid shift in product and pricing policy (moving from a promotional model to everyday low prices) has alienated regular consumers, compounded by the loss of local DIY expertise following the upheaval of management. As an immediate response, Bunnings Group managing director Michael Schneider has halted capital expenditure on the store transformation program, but will complete the five stores currently under conversion.
I used to use Homebase every week almost. Since Bunnings have taken over and done away with Gift Vouchers and Nectar points I have not been inside one.

Thanked by: Dream onblythburghkevinchess1
William Joseph1
 
Posts: 10295
Joined: Tue Jun 29, 2010 7:14 pm
Location: The Isle of Dreams
Has thanked: 4748 times
Been thanked: 9479 times

Re: 40 Stores to close....

Postby Derbiean » Thu Feb 08, 2018 8:45 pm

Damn thats some poor management :shock:

Thanked by: blythburgh
Derbiean
 
Posts: 457
Joined: Sat Feb 06, 2016 11:49 pm
Has thanked: 294 times
Been thanked: 608 times

Re: 40 Stores to close....

Postby macliam » Thu Feb 08, 2018 9:30 pm

I saw this yesterday - my local Homebase is still as was and looks more like a discounter - having lost the Argos and Laura Ashley franchises as a result of the sale. It sits almost next to a B&Q store which won't help and I fear for its future. With the loss of the Focus chain it will leave B&Q fairly dominant.

But the DIY market must be OK at base as a brand new Wickes has opened up recently - it is the business model that's awry.

Always liked the discount weekends, never went near them otherwise.....
Just because I'm paranoid, it doesn't mean they're not out to get me

Thanked by: Dream onblythburgh
macliam
 
Posts: 7203
Joined: Thu Jul 18, 2013 11:26 am
Location: By the Deben, Suffolk
Has thanked: 1438 times
Been thanked: 6892 times
Sharing: *

Re: 40 Stores to close....

Postby Constantine » Fri Feb 09, 2018 6:56 am

Boro Boy wrote:..This is the latest of many announcements of restructuring and closures in the retail markets; something is happening out there...


The interweb will wipe out big chunks of bricks and mortar retail. In fact it already has. Plus, of course, austerity. We are still recovering from the disaster that was Bungler Brown. Real wages aren't that much higher than they were a decade ago. So, as you see in the grocery business; discounters like Lidl are booming, the big 4 are getting squeezed and are cutting their cost base.

There will be casualties. :)

Thanked by: Dream onblythburgh
Constantine
 
Posts: 479
Joined: Fri Jul 02, 2010 12:04 pm
Has thanked: 59 times
Been thanked: 540 times

Re: 40 Stores to close....

Postby pabenny » Fri Feb 09, 2018 7:10 am

You would think that DIY would be relatively immune to online shopping as the products are heavy and/or bulky or are products that people want immediately.

I think there are demographic influences at work: the baby boomer generation owned their own homes, the properties were ripe for improvement, and manual labour skills were commonplace. Today's 25-45 year olds are less likely to own their home, less likely to have the skills to refurbish, and less likely to have the time.

Thanked by: kevinchess1Dream onChadwickblythburgh
pabenny
 
Posts: 783
Joined: Tue Jun 29, 2010 4:21 pm
Has thanked: 354 times
Been thanked: 1127 times

Re: 40 Stores to close....

Postby pabenny » Fri Feb 09, 2018 7:14 am

Constantine wrote:There will be casualties. :)


With the recent profits warning and job cuts, Debenhams looks vulnerable. I know quite a few people that seem to like the stores but I honestly don't see the point of Debenhams.

Thanked by: blythburghkevinchess1
pabenny
 
Posts: 783
Joined: Tue Jun 29, 2010 4:21 pm
Has thanked: 354 times
Been thanked: 1127 times

Re: 40 Stores to close....

Postby Constantine » Fri Feb 09, 2018 7:18 am

pabenny wrote:
With the recent profits warning and job cuts, Debenhams looks vulnerable. I know quite a few people that seem to like the stores but I honestly don't see the point of Debenhams.


House of Fraser as well. Department stores seem particularly vulnerable. Unless you are a virtual department store called Amazon.

Thanked by: blythburgh
Constantine
 
Posts: 479
Joined: Fri Jul 02, 2010 12:04 pm
Has thanked: 59 times
Been thanked: 540 times

Re: 40 Stores to close....

Postby Chadwick » Fri Feb 09, 2018 8:29 am

Since the take over, our local Homebase has looked like it's having a closing down clearance sale. It just feels shabby and like the stock on the shelves is overstocks and last-season's trends.
Apparently the neighbouring Tesco store has wanted the land for ages, so I suspect it will be an easy target to sell off.

Thanked by: blythburghDream on
Chadwick
 
Posts: 1325
Joined: Mon Jul 05, 2010 3:21 pm
Has thanked: 685 times
Been thanked: 1852 times

Re: 40 Stores to close....

Postby Chadwick » Fri Feb 09, 2018 8:30 am

Constantine wrote:
pabenny wrote:
With the recent profits warning and job cuts, Debenhams looks vulnerable. I know quite a few people that seem to like the stores but I honestly don't see the point of Debenhams.


House of Fraser as well. Department stores seem particularly vulnerable. Unless you are a virtual department store called Amazon.

I'll add WH Smiths to the list. I feel their stores need a facelift, but it looks like either there isn't the cash, or the confidence to do so.

Thanked by: kevinchess1blythburghDream on
Chadwick
 
Posts: 1325
Joined: Mon Jul 05, 2010 3:21 pm
Has thanked: 685 times
Been thanked: 1852 times

Next

Return to Finance & property

Who is online

Users browsing this forum: No registered users and 6 guests