Homebase has struck a deal with Tesco to introduce a shop-in-shop concept in its supermarkets, selling home improvement products.
The first concession will open in Tesco’s Borehamwood store tomorrow, followed by two more in Walkden and Woolwich next month.
Products available will include paint, power tools, home accessories and hardware. The shops will also sell outdoor furniture, garden decorations, firepits and lanterns.
Meanwhile, shoppers will be able to browse kitchen, bathroom, and lighting displays to gather inspiration for bigger projects. And a click & collect service is available for orders on the Homebase website that can be collected within one hour.
Damian McGloughlin, the Chief Executive of Homebase, said: “We’re really excited to be partnering with Tesco, bringing our home and garden products and expertise to even more local communities. We’re always looking for ways to make it easier for customers to shop with us and teaming up with Tesco means we’re able to do just that.”
Homebase has already partnered with Next, rolling out garden centres in 11 of the clothing & home retailer’s stores.
The DIY chain was bought by restructuring firm Hilco for £1 in May 2018 after a disastrous spell under the ownership of Australia’s Wesfarmers. A recovery plan implemented by the new owners has seen Homebase return to profit and increase sales as customers responded well to new ranges and improvements to both the in-store and online shopping experience.
NAM Implications:
- Given online growth at the expense of traditional retail…
- …resulting in freeing up of instore space…
- …‘sub-letting’ to concessions will become a feature in most big-space outlets.
- Probably using a combination of low rental and a % of sales…
- …to ensure quality partnerships.
- In other words, anticipate rapid take-up…
- …and prepare appropriate proposals now.
