Went in our recently converted old Homebase store today. What a mess Stuff piled everywhere. Dark and gloomy. Lots of cheapo brands. Couldn't find what I wanted so went down to Wickes.
I read recently that the takeover had been a complete disatster and that their owners Wesfarmers intend to sell up and pull out of the UK. I'm not surprised. Shame really. I guess they just didn't understand the UK market
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Indeed its been a complete cock up, worse than Morrisons take over of Safeway.
Bunnings sacked all the middle and senior management of Homebase, dumped wholesale all the Laura Ashely concessions, all the furnishings, high profit margin items and made it into a very uninviting place.
They now admit that have made a huge mistake and are now in a situation where it will cost a fortune to pull out, or a fortune to fix it. Heads have rolled.
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They must be hot cross Bunnings?
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Is this the aussie company that took them over? The nearest homebase around here got turned into a B&M, by the sound of it I've not missed out on much.
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We have a "four candles" joint here. I needed to drill out a pair of screws and plugs from a heavy duty gate catch. Two 4" Screws and a pair of plugs 96p...complete with a hand written receipt.
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Likewise, very old fashioned village DiY sells pretty much anything you could want or think of. The shop is absolutely rammed floor to ceiling.
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I'm not sure how long Bunnings have been in charge but I thought our local Homebase had been going downhill for some time before I became aware of them.
Shame, for all the faults of the large diy sheds they are dwindling rapidly. (Or maybe because of those faults!!).
Where's Great Mills, Focus? All gone...
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So are people doing less DiY or just buying from elsewhere?
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>> So are people doing less DiY or just buying from elsewhere?
>>
Much cheaper and a better selection on the internet.
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>> Much cheaper and a better selection on the internet.
And even when the final purchase will not be made on the internet, it nonetheless brings great availability and pricing visibility.
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>> So are people doing less DiY or just buying from elsewhere?
Screwfix
Part of B&Q
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Homebase until 2 years ago were part of the Home Retail Group - same as Argos. Sainsbury wanted Argos (and also got Habitat) but didn't want Homebase. Ironic because Sainsbury setup Homebase didn't they?
So sold to the Australian Wesfarmers company which was going to brand them all Bunnings. They've not done many yet and it's time they stopped. I was a photo of the inside and it looked very basic. It's gone back to basic DIY tools, materials, etc. and ditched the changes Homebase had tried to entice new customers like appealing to women.
Maybe Bunnings like this appeals to Ute drivers but it's not what we need want.
What I don't quite see is how they bought if for around £330M and have already written off over £500M....
I can see them trying to give it away. They can't actually afford to close them all and run back to Australia because they are liable for about £1 billion in rent and those contracts have time to run.
It's not as bad a fail as Conviviality. Four weeks ago the company was valued at around £500M and shares were £3. Then they are worthless now. The first chunk - the distribution arm and the high end off licence chain went for £1 plus paying debtors off at a 50% discount (£50M?).
Last edited by: rtj70 on Fri 6 Apr 18 at 20:31
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Bunnings is like B&Q. Bunnings bought Homebase to be their B&Q competitor because that's the sapce they compete in.
However, Homebase was not B&Q, and not even the same customer approach.
So Bunnings tried to make Homebase like B&Q. All the Homebase customers wanted Homebase, so they stopped coming.
The B&Q customers were already using B&Q, and for the most part saw no reason to go to Bunnings because in their minds it was still Homebase.
Bunnings mindset was "rebrand an existing operation, otherwise continue as is" but their actual task was "Rebrand AND REPOSITION an existing operation".
A world of difference.
Whoever ran the acquisition project should (and probably will) be sued.
Whoever provided the industry expertise to the low, high and as-is business cases and the risk analysis should (and probably will be) sued.
Whoever did the due diligence is on for a serious slapping.
The internal post-acquisition team still have a career direction, but it is unlikely to be up.
Ironically competing with B&Q is/would be a very good strategy for Bunnings. But using the the Homebase operation as a foundation was about as inappropriate as it is possible to get.
M&A Schoolboy error - There is going to be serious and significant amounts of s*** flying around.
Last edited by: No FM2R on Fri 6 Apr 18 at 20:42
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"However, Homebase was not B&Q, and not even the same customer approach."
Some 20-30 years ago when we were regularly moving house and putting up fresh shelves, B&Q was always my first port of call for DIY stuff - Homebase never seemed to have the same choice or be quite as serious about DIY; their approach always appeared a little more 'superficial'.
As time went on, Homebase seemed to respond by diversifying into other areas e.g. furniture and went along the fatal route of trying to become all things to all men.........but ending up as nothing to anyone. Diversification can be necessary for market survival, but it also has to be approached with care.
I have to admit that I haven't been to our local Homebase for a while, so I don't know if it has become a Bunnings. Nowadays, most of my DIY needs are satisfied by Screwfix - a clever move by B&Q that left Homebase standing.
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It was the classic repositioning error. Fail to get the new customers you wanted and lose the ones you started with.
And the "me too" approach is going to be difficult when you are number 2 or 3 in the market.
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Went to our local Homebase yesterday in search of a new 'strimmer' as the never satisfactory Flymo I bought a few years ago had got beyond the pail. Rotating head wouldn't lock in the edging position and extending handle wouldn't lock at all.
Really wanted a Bosch as the seem best of mas-market but next to nothing in store in that or any other recognisable brand. Not much better for lawnmower extension reel or the 2m 6 gang trailing lead I want for caravan.
Conjoined Argos already gone and suspect Homebase being run down for closure - too small for Bunnings model I think.
This in today's Grauniad/Observer:
www.theguardian.com/business/2018/apr/08/homebases-australian-boss-flies-in-to-tour-troubled-diy-chain
Got most of it in B&Q except the 6 gang. All have a right hand entry for supply cable. Would prefer it on other end as that's a neater fit where we want it under van's dinette.
Next step is to explore self assembly route.
Last edited by: Bromptonaut on Sun 8 Apr 18 at 16:27
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All have a right hand entry for supply cable. Would prefer it on other end as that's a neater fit where we want it under van's dinette.
Turn it the other way up?
I think that Bunnings are running down some of the non profitable old Homebase stores prior to closure. I never saw Homebase as a supplier of choice.
The 2 Bunnings branded Bunnings that I have used have good stocks, very helpful staff, with a range of products that are a little different. I would undoubtably use before a B&Q normal store. The B&Q Superstores however do hold an impressive range.
Last edited by: sherlock47 on Sun 8 Apr 18 at 18:31
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>> Turn it the other way up?
I'd considered that but what I want is six sockets on top of a service duct that covers water/heating conduits going to caravan's bathroom and sits against outside wall of 'van. Turned other way up exits from plugged in devices are constrained against outer wall. Most items we want to plug in are transformers for laptops and desk lights which have bulk well below L/N pins.
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I suddenly realised that within 60cm of my keyboard I have one of these.
www.officeoutlet.com/technology/circuit-protection-cables-etc/cables-and-switches/8-socket-2m-13-amp-surge-protected-extension-lead-white/
It might just do what you want. However plug in transformers that are E high nullify the adjacent opposite socket.
I am pretty sure that it came from Robert Dyas but not currently on their website.
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And so Bunnings have stepped away, sold Homebase for £1
www.bbc.co.uk/news/business-44248409
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My local Homebase has only just converted into Bunnings. Does this mean it will now convert back again?
Dear Lord!
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>> My local Homebase has only just converted into Bunnings. Does this mean it will now
>> convert back again?
Some will revert to Homebase but others will be closed:
www.theguardian.com/australia-news/2018/may/25/bunnings-pulls-out-of-britain-after-1bn-plus-disaster
Suspect our local one will go. It was originally Texas Homecare and eventually taken over as Homebase when Texas sold out to Sainsbury. Only half it's original size now as it was split to create Argos - now migrated to adjacent Homebase. Access was and remains a pain.
Shut it and clear/redevelop site seems most likely outcome.
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Argos inside Homebase stores unlikely to last since Home Retail Group (minus Homebase) was purchased by Sainsbury's.
What a mess Wesfamers made of their purchase.... obviously cheaper to write off hundreds of millions than to invest even more.
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I think the retail climate is somewhat harsh at the moment (though I did see figures suggesting otherwise earlier), they probably just picked their time badly.
EDIT didn't B&Q post really bad sales figures for Q1 yesterday? So maybe not all Bunnings fault
Last edited by: smokie on Fri 25 May 18 at 12:49
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The format of the Bunnings stores that Wesfarmers was turning Homebase into was wrong for the UK market. They got it wrong. And fired all the management at the start.
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>> I think the retail climate is somewhat harsh at the moment (though I did see
>> figures suggesting otherwise earlier), they probably just picked their time badly.
The retail environment was tough when they bought it, and the forecast was tougher. It may be bad timing, but everyone knew it was bad timing at the time, and they went on to screw it up even further. Its not bad luck its very very very poor management.
Seems to be a lot of that lately.
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Really miss Maplins.
Wanted a sinle data cable face plate and a couple of Cat5e patch leads. Doesnt seem B&Q sell them. Bread and butter stuff for Maplins. Had to order off the tinterweb with the ensuing delay waiting for the parcel to drop through the letterbox.
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Bracknell Maplins is still open and is selling stuff off at up to 80%. That makes some items normal price as far as I am concerned, but they also have some good bargains.
There is still a reasonable portion of their normal stock (components, leads, plugs) but I keep popping back as they unearth other stuff quite frequently. I've not actually bought much but it's been good for my "stop buying stuff you don't need" therapy. :-) I almost came out with a drum of Cat5E for £15 the other day (mostly wireless here... !!) and there was some other cable that caught my eye but I'm not sure what it was for so I let it go :-)
On a related note, I've not had any deliveries from my mates in China for a bit, but I did order something today. I felt I earned it :-)
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>> Really miss Maplins.
>>
>> Wanted a sinle data cable face plate and a couple of Cat5e patch leads. Doesnt
>> seem B&Q sell them. Bread and butter stuff for Maplins. Had to order off the
>> tinterweb with the ensuing delay waiting for the parcel to drop through the letterbox.
>>
Even the convenience wasn't worth the inflated prices in my opinion. Maplin was great to wander around while the missus was in the craft shop over the road, but that's all I used it for.
I think I posted this in the Maplin administration thread, but I could not bring myself to pay the £16.99 they were asking for an HDMI to mini HDMI converter when Amazon could do the same thing delivered next day for £2.50. I expected, and was prepared to pay a bit more, (£7-£8 perhaps) but that was taking the mick.
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>> Wanted a sinle data cable face plate and a couple of Cat5e patch leads.
This is 2018 you know. en.wikipedia.org/wiki/Wi-Fi
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Not sure what you are getting at there Z.
If its to do with not using the WiFi facility. I am.
Just had fibre optic installed and am now shuffling under floor cables and connections so I can get the new router back in the hall, which is the central point of the house to help the signal.
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Agreed.
My ADSL router was in the centre of the house with plenty of telephone/ADSL sockets around the building. Prior to Karndean flooring going down I created a bit of a Cat5e network to two rooms to give a couple of 'hard wired' options.
Now I've upgraded to fibre. The installers took the path of least resistance and attached the router direct to the fibre optic box (haven't a clue what it should be called but its on the internal wall at the access point). But this is in a distant corner of the house. I've blagged one of my pre installed Cat5e wires to now facilitate the router to be moved to the centre of the house and the router is sat on top of a tall cupboard where I still have to get down to the skirting area with a few connections.
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But this is in
>> a distant corner of the house. I've blagged one of my pre installed Cat5e wires
>> to now facilitate the router to be moved to the centre of the house and
>> the router is sat on top of a tall cupboard where I still have to
>> get down to the skirting area with a few connections.
DOH (bangs head against the wall). Leave your stuff where it was installed and mesh your wifi for full house coverage. No cable stuff required.
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Bunnings - Zero
