HOMEBASE has announced that it's set to close several stores so they can be taken over by one of the country's best known supermarket chains.
Homebase currently operates around 144 locations across the UK.
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But now Sainsbury'shas agreed to acquire all the affected shops and convert the units into supermarkets.
Here's everything you need to know.
How many stores is Homebase closing and why?
Homebase is set to close ten stores in total.
The news comes as Homebase's owner, Hilco Capital, is preparing to sell the company.
Read more on Homebase
Hilco Capital, which purchased Homebase from Wesfarmers in 2018 for £1, is believed to have started a formal sale process after being approached byThe Range.
Other retailers that have previously shown an interest in Homebase include B&M, the London-listed discount retailer.
Homebase has closed 106 stores since it was taken over by Hilco Capital in 2018.
It's been a difficult time for home improvement chains, both large and small.
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Shoppers have been cutting back on spending after thepandemic.
Plus, the recent turmoil in thehousing markethas meant that homeowners aren't as focused on DIY projects as they once were.
In thespring, Kingfisher, which ownsB&Q and Screwfix, revealedthat annual profits hadslumped by more than a quarter.
The company reported a 25.1% drop in underlying pre-tax profits to £568million for the year to January 31, 2024.
Window and door specialist Everest called inadministratorsin April, leaving customers in the dark about their orders.
Last year, the grouphad previouslycautioned profits would slip after a 36% drop in pre-tax profitsfrom £1billion to £611million in the 12 months to January 2023.
Additionally, RivalWickesalso reported a 31% fall in profits to £52million on flat revenues of £1.55billion for 2023.
Where are the closures happening?
The Homebase locations set for conversion are located in:
- Sutton Coldfield
- Bromsgrove
- Cromer
- Derry/Londonderry
- Fareham
- Inverurie
- Lowestoft
- Newark
- Omagh
- Rugby
Once they are converted, the shop floor area of the stores will range from approximately 15,000 to 40,000 square feet and will add a total of around 235,000 square feet to its supermarket trading space.
Sainsbury's plans to open the first of these new stores by nextsummer, marking a significant expansion for the supermarket chain.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
Highenergycosts and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in Britishretaildropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre forRetailResearch revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre's director, Professor Joshua Bamfield, said the improvement is "less bad" than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
"The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducingretailspend," Prof Bamfield said.
"Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive storeclosuresduring the pandemic exceptionally difficult."
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023's biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.
The Centre forRetailResearch said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.
What is happening to the British high street?
Thenewscomes amid a challenging time for the whole of the UK’s retail sector.
Highinflationcoupled with a squeeze on consumers' finances has meant people have lessmoneyto spend in the shops.
Also the rising popularity in online shopping has meant people are favouring digital ordering over visiting a physical store.
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Unseasonably wetweatherhas also deterred shoppers from hitting the high street. This ongoing issue has seen brands such as Paperchase, and The Body Shop, go bust.
However, a number of retailers are planning to grow their portfolio, so it is not all doom and gloom.
