Bunnings owner Wesfarmers has converted a clutch of its Homebase stores into a new ‘Clearance Outlet’ format as it struggles to arrest falling UK sales.
The Australian conglomerate acquired Homebase in 2016 with a vision of rolling out its Bunnings Warehouse format across the UK and Ireland. But plummeting sales and mounting losses have cast doubt on the retailer’s future in the market.
The DIY firm launched the initiative to help clear surplus stock in December last year and has opened a total of six Clearance stores since – located in Bournemouth, New Southgate, Peterborough, Bristol, Warrington and Greenock.
Earlier this month, Wesfarmers was hit with a £454m impairment charge relating to its acquisition of Homebase, prompting new managing director Rob Scott to commence a review of its botched mission.
The retailer, which has converted 19 Homebase stores into its Bunnings Warehouse format to date, is expected to file half-year losses of around £97m on February 21.