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.