Homebase, still looks like B&M

7 February 2017

I am yet to get to St Albans for a look at the new Bunnings outlet, so I missed out on the Sausage sizzler unfortunately. Albans seems a fair place to trial the new format, and Bunnings pointed to their near glee at the number of sites within the M25 where the streets are literally paved with gold.

Wesfarmers have been crystal clear that the success of the roll out (or not) will be based on the trial stores. However to trial two of the stores inside the same city seems odd.

Surely a trial should be stress tested in the poorer demographics too, as the new model stores would have the best success rate in the poorer stores, given the halo effect that any refit (or entire remodel) brings.

It will be hard to read anything into a limited scale trial anyway, but to put two of the new model stores in one area is slightly bizarre.

I do look forward to visiting Bunnings UK and seeing how they trade their stores differently to their Homebase chain, which is of course where the focus needs to remain.

Whilst we can all get excited about the odd store or two that are the new world, the rump of the estate and key driver of perception of the chain is Homebase. So let's take a look at what's going on.

Hardly inspiring customers to buy a rug to brighten their home...

'Make a house a home' was their strapline for a number of years, the doormat/rug display perhaps is an example of where retailers literally do not live their own values.

It's entirely unclear whether this is Wesfarmers trading through the longer term 'buy' and are clearing out, or they're trying to grow sales by adding stock and stacks everywhere.... Or indeed, they're riding the wave and will cull the range as they revamp the stores towards Bunnings.

B&Q will have a fair bit to fear you feel; Wickes are positioned off as a more of a 'merchant' in the space, ironically the space that Bunnings themselves occupy in Australia.

However B&Q are that mass market DIY retailer who try to occupy both spaces, however whenever I go in there, I can't find anything.

It's too intimidating to a novice and the flow appears to be illogical at best, gardening sits at one end with associated lines together, but that's next to Baths and Sinks... An expert department...

It might just be my local but I do find myself asking staff for help with locations of things. Not so much in Homebase where it's a bit more logical in terms of flow, less trade and more rounded experience perhaps.

That said, the range in B&Q is at least broadly in line, Homebase appear to be stocking all manner of products from various categories that make little or no sense in some respects to customers.

I think customers would expect to find some of these lines in Homebase, particularly cleaning products. But you'd expect industrial strength / sized products, not the standard range. Nor would you expect the sheer depth of range here.

Particularly when you consider Ecover and Method are relatively niche / specialist lines. Why is there such a huge assortment of these?

In many areas, these lines were core sizes that could be found in your local Asda, or even worse, B&M at a lower price. The concern for Homebase here is they're eroding price perception with some poor value lines when a customer looks across the landscape.

A customer looking across this landscape sees what looks like an art installation in this aisle; their attempts to drive sales have been strong and their like for likes are good.

However it does look a bit down at heel in some areas, with the stacks seemingly put out for the sake of it, rather than an attempt to drive sales forward.

Storage boxes aren't the most attractive in any case, but is there a need for more stacks down the aisle?

Not at all. Just overload.

Inspiration is part of the battle with the DIY market, people are going in to these stores, at their most basic level to improve their homes.

That's the point of 'home improvement' chains like Homebase, B&Q and the rest. So inspiration has to form a part of things, alongside price, value and everything else, including brands.

However at the minute, whilst core trading is better at Homebase (from a low base), it can be hard yards in store from a customer viewpoint.

No one minds the a stack or two around the store, well sited and thought out shippers drive trade and money through the tills... But the overload of things all over the store doesn't help matters at all.

Not just that, but some ranges are perplexing at best, the household / cleaning bays are filled with lines that can be found elsewhere. Cheaper too.

With inspiration,home improvements and 'making a house a home', who knows how the Gruffalo hat, glove and scarf set ended up in Homebase.

Even more puzzling is the price.....

All eyes on Bunnings, I'll be at the St Albans branch in the very near future..

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From the Grocery Insight newsletter archive, first sent to subscribers on 7 February 2017. Steve now writes at read.groceryinsight.com. See also the blog archive and briefings.