WHERE DOES THE HOMEBASE CUSTOMER REALLY SHOP NOW?

“When a brand as big as Homebase exits the market, then every other retailer playing in some, or all the same categories ought to benefit to an extent – assuming they are on their toes.  Having said that, the most obvious answer to the question of where Homebase shoppers are now from an outsider’s point of view is The Range.  After all, it’s The Range who took over more than seventy of the original Homebase stores.   I wonder however, how many people have in truth transitioned from being Homebase customers to being Range regulars.  Certainly, The Range has gained from its move, but whether the gain has come from more sales to and more categories for its existing customer profile, or from the capture of the original Homebase customer is a very moot point.”

So says Clive Daley, Daley Hub’s founder and director.  Clive continues, “Going forward, it will be difficult to measure like for like as far as the garden and outdoor leisure markets are concerned because this spring’s fine weather skews any real comparatives, but I contend that the question of where Homebase customers have gone is more complicated and more fluid than it might first appear.  I am betting on quite a few other retail players grabbing headlines about increasing market share.  So, the takeout for wise suppliers is that while The Range has potential, there are other opportunities still worth pursuing.  Let’s look at the other contenders.

Garden centres

“Some Homebase customers will undoubtedly have switched their loyalty to garden centres. There are several reasons.  Garden centres tend to play at the premium price end, and they should be able to capture the grey money and the affluent purse in general. 

“They also have a good understanding of what were Homebase’s core customer groups.  As my colleague, Charles Powiesnik, Daley Hub’s Head of Retail explains, “Why would a customer wanting newness and innovation shop a big general home and garden retailer where curation is driven by a systematic data and trend driven factors to minimise risk?  When in contrast a good garden centre will knows its customer so well that it can get ahead of the game. This type of customer doesn’t want ‘same as’ anymore.  They want real inspiration about outdoor living and ‘the fifth room, as it is now termed.””

Clive continues, “At Daley Hub, we are already hearing from the big players that sales are currently strong, even if some of them have weak comparatives versus last year.  As an example, I feel Dobbies will make an impact and with their new store layouts and decoration, hoovering up these customers accordingly.

B&Q

“While B&Q was always viewed as different in character to the lighter, softer Homebase, over the last eight months I feel it has stepped forward significantly with its strengthened power isle offer and without exception this includes its spring / summer gardening presentation.  Its huge buying power enables an inviting, affordable range and already market share has increased.  It is also worth noting that while gardening power tools may be its most natural area of gain, its ‘good home’ Christmas offering was sold out last year…

B&Q Marketplace

“The marketplace boom and the extended range that it delivers, should be in every garden supplier’s sights.  The attraction for the erstwhile Homebase fan is all about the channel’s ability to satisfy the needs of consumers who want something different. The B&Q iteration has been much more vocal recently, now boasting over 1.2 million products from more than a thousand sellers and contributing a substantial portion (over 45%) of B&Q's online sales.  The expansion of categories and products is a direct response to customer demand for choice.  Approximately 50% of shoppers on the marketplace were new to B&Q.  It is capturing the hearts of consumers who used to shop elsewhere - and fast!

Some other retailers for suppliers to nurture

“In this post-Homebase environment, there are also some other destination retailers of more than average relevance for garden suppliers.  Given the Homebase profile, maybe surprising, but B&M has ramped up its indoor and outdoor plant range at super-competitive price points.  With cost-of-living an issue still, this is bound to attract money-savvy gardeners, who will consider all other relevant products alongside.

The other retailer I cite in this context, again perhaps surprising, is Wickes.  Alongside B&Q, it is an obvious destination for DIY products like paint, tools, bathrooms and kitchens, but it is also now actively targeting garden and garden garden leisure as it has never done before. It is setting out to be ‘part of every home improvement project in the UK, both inside and out’ and with the 'fifth room' opportunity on its agenda, it is looking to make more of the outdoor living category.

The answer to the Homebase question

“Of course, The Range has benefitted and rightly so from its takeover of former Homebase stores, but as to where the former Homebase customer now shops, the answer is much more complicated.  If they are not already doing so, garden suppliers need to target more widely.”