Strategy (6)
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Prospect Analysis
Home Bargains (Strategy)
Home Bargains is a family-owned discounter selling branded groceries and general merchandise at the lowest possible prices. It does this through an opportunistic sourcing strategy, with 30% of the range comprising end-of-lines and clearance products. Supported by an aggressive store opening programme, it has seen its sales nearly double over the last five years.
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Prospect Analysis
Ecommerce at Home Bargains
Home Bargains offers low-value items such as food and drink on its website, although only in large volumes to boost minimum order values, and with relatively high delivery costs. It has expanded its product offer of late and has introduced new categories such as furniture, homewares, garden products and personalised gifts in a bid to extend appeal and drive growth.
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Prospect Analysis
Technology strategy at Home Bargains
The retailer’s business model is driven by low costs and is chiefly achieved by doing as much as possible in-house. Over the years, Home Bargains has integrated third-party systems and worked with consultancies. Most notably, the retailer has been a longstanding user of IBM’s iSeries/AS400.
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Prospect Analysis
Supply chain at Home Bargains
Despite its value positioning, Home Bargains operates two state-of-the-art distribution centres. These use various automation technologies, including pick by voice equipment, conveyor technology and an automated case order picking system.
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Prospect Analysis
Stores at Home Bargains
Home Bargains has expanded aggressively and has ambitious plans to operate 800 to 1,000 UK stores over time. With its heartland in the North, it is now making a big push into the South following the opening of a second distribution centre in Wiltshire.
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Prospect Analysis
Customer and marketing at Home Bargains
Home Bargains is a cut-price variety chain that has been taking advantage of consumer trends towards value and convenience. The retailer aims to offer the lowest prices in the UK on top quality, branded goods and this is underlined by its strap line of “Top Brands, Bottom Prices”.