The new megastore in Glasgow, Scotland, taps into the current popularity of very large store formats in the United Kingdom. It is the third Homebase outlet of this size following the opening of a prototype store in Dundee, also in Scotland, and then one in Greenwich, London. Both of these are joint ventures with the Jewson builders’ merchants chain, although Homebase has now decided to go it alone for its new megastore format. The company has said that it intends to open four further megastores this year and that it will be running them as a separate division within the company, rather as B&Q does with its Warehouse stores – which now number fifty.
The Homebase move certainly reflects an intensification of competition amongst retailers in the large-store category. Focus Do It All is also working on a large-format store category and intends to have 25 of these open within the next five years.
Homebase claims an advantage over its competitors in its ability to offer a broader and more credible range in its new, expanded stores. The megastores will carry up to 50 000 products, as opposed to 25 000 in a typical Homebase store. Many of the additional lines are in the home enhancement area – textiles, cook and bath shops, lighting and bedding.
“Market opportunity has been a major consideration in our move to the new format,” says Kate Swann, managing director of Homebase. “We examined a range of markets to assess their current size, future growth prospects and competitive situation, and the three that emerged as most attractive were DIY, garden and homewares. The flexibility of the Homebase brand is one of its greatest strengths, enabling us to move into a new market such as homewares in a way which would be much more difficult for our competitors.”
The company also believes its new stores respond to a consumer trend to take on more complex, design-driven projects, encouraged by the large number of TV programmes about DIY currently being shown.
Consumers nowadays view DIY and home enhancement shopping as a pleasure rather than a chore. They want to see a wide range of products that they can both touch and feel. This is a requirement which the large store format is best able to provide, in the opinion of Homebase and those other retailers currently developing this format.