Gardening and DIY fans have been given two blows as it has been announced that 27 major outlets are closed as trouble hits the sector. Yesterday garden chain Dobbies said that 17 outlets will shut down, saying they are unprofitable.
And last month it was announced that Sainsbury’s is taking over 10 Homebase stores, which are also big suppliers of garden products, and converting them into supermarkets. Dobbies is thought to have faced another difficult year after racking up losses of £130m last year driven by high inflation and unseasonable weather dampening sales.
The popular chain is carrying out a restructuring plan that will see it close 17 stores – including all six of its Little Dobbies urban format – taking its store count down to 60 shops in a bid to “address historically uneconomical rent costs and ensure a return to sustainable profitability”.
Homebase racked up heavy losses last year, as it claimed customers had been “cautious” with their spending. The business reported an £84m loss in the year to January 2023, from a profit of £30m the year prior, according to accounts viewed by The Times. Sales also plummeted from £788m to £701m during the period.
The changes mean that shoppers will find in many cases their local store has closed down – here’s the full list of those impacted.
Dobbies main stores closing:
- Altrincham
- Antrim
- Gloucester
- Gosforth
- Harlestone
- Heath
- Huntingdon
- Inverness
- King’s Lynn
- Pennine
- Reading
- Stratford-upon-Avon
Little Dobbies
- Cheltenham
- Chiswick
- Clifton
- Richmond
- Stockbridge
- Westbourne Grove
Homebase stores changing to Sainsbury’s
- Birmingham Sutton Coldfield
- Bromsgrove
- Cromer
- Derry/Londonderry
- Fareham, Inverurie
- Lowestoft
- Newark
- Omagh
- Rugby
The Homebase stores chosen for conversion are because they grow Sainsbury’s supermarket coverage across England, Northern Ireland and Scotland. Once converted, the shop floor area of the leasehold stores will range from approximately 15,000 to 40,000 square feet.
The first of the 10 stores will open next summer, with the aim to convert all new sites by the end of 2025. The gross investment value of the acquisition (the total cost of leases, acquisition premium and fit-out costs) is expected to reach approximately £130 million.
CEO of Sainsbury’s, Simon Roberts, said: “Sainsbury’s food business continues to go from strength to strength as we push ahead with our Next Level Sainsbury’s plan… We want to build on this momentum, which is why we are growing our supermarket footprint.”
Dobbies will also seek rent reductions at nine further sites. It said that this, alongside “other tangible cost savings” will help it secure “its long-term future…allowing access to future investment”. Sales fell 8% to £278.7m, which it said was down to the impact of “adverse weather in Spring 2022 exacerbated by the macroeconomic conditions”.
The wider gardening sector also feeling the impact of the cost-of-living crisis and weakened consumer demand. British Garden Centres development and project manager Amy Stubbs told Retail Gazette the weather has played havoc on trading this year. “It’s never really felt like the season has properly started. We always normally feel like we have a bit of a rush and we can tell that the season’s kicked in.
“But this year, it hasn’t ever felt like it’s got going. It almost feels like any time it’s had a chance to start, the weather has then ruined it and it’s gone backwards again. It’s just been very stop start.”
GlobalData lead analyst Emily Salter said on the Homebase challenge: “The DIY market fell by 0.3% in 2023 as consumers had already made any improvements to their homes during Covid-19 lockdowns, and due to the weak housing market and low consumer confidence for purchasing big-ticket items.
“These trends continued into the first half of 2024, impacting DIY demand.”
