This week's retail news 'you may have missed'.....
At mdj2, we’re passionate about retail and always looking to share our news, views, and insights. With so much information out there, we wanted to share just a small selection of retail news headlines from last week that we found interesting…
B&Q to buy five Homebase stores in the UK.
B&Q has announced that it has reached agreement to acquire 5 leasehold stores in the UK, currently trading as Homebase, for a total purchase price of £2.5 m. This follows the agreement to buy 3 stores currently trading as Homebase in the Republic of Ireland, and further complements and strengthens B&Q’s existing network of stores.
Following conversion to the B&Q banner, the 5 UK stores will have a combined total selling area of over 25,000 square metres and enable more customers to benefit from B&Q’s and TradePoint’s extensive offer of home improvement products and services, helping to make home improvement projects and trade jobs easier. This includes Kingfisher's own exclusive brands, and B&Q’s leading customer propositions: kitchen and bathroom design and installations, TradePoint counters, timber cutting and paint mixing, access to an extended range of over 1.2 million home improvement products at diy.com and click & collect and home and bulk delivery services at diy.com and trade-point.co.uk.
The agreement for the stores is subject to landlord approvals, with the expectation that the transactions will complete in the first quarter of Kingfisher FY 2025/26, and that the stores will start to be converted to the B&Q banner in Spring 2025. All conversions are expected to be completed by the end of calendar year 2025. Capital expenditure relating to the store acquisitions and fit-out costs will be incurred by B&Q in Kingfisher FY 2025/26.
On completion of the lease assignment, the employees at the stores will become employees of B&Q.
Graham Bell, CEO, B&Q, said: “We’re delighted to be buying these 5 stores, bringing a total of 8 additional sites to our fantastic store network in the UK and Ireland. We’re determined to give home improvers the choice and convenience they deserve, and to transform the home improvement stores in these locations to fulfil that need. It’s a great way to be starting 2025! We look forward to swiftly concluding these purchases and converting the stores to the B&Q brand and offer, and to welcoming our new customers to the stores and new colleagues to the B&Q family.”
The 5 leasehold stores currently trading as Homebase and being purchased by B&Q Limited in the UK are:
· Homebase Altrincham
· Homebase Basingstoke
· Homebase Biggleswade
· Homebase Leamington Spa
· Homebase Worcester
Asda announces price drops on thousands of products.
Asda is reducing the price of 2,500 household staples by an average of 26% as part of its Big Jan Price Drop initiative.
Products with new prices include items such as Cathedral City Mature Cheddar 300g, down from £3.75 to £2.50, Asda Chicken Breasts, reduced from £4.40 to £4.00, and Persil Wonder Wash down to £3 from a previous £7.
David Hills, chief customer officer at Asda said: “We know that as we come out of the festive period, budgets can be a concern for many families.
“Our Big Jan Price Drop aims to ease that burden and make money stretch further for our customers, by reducing the prices of the products they’re buying week in, week out, continuing to offer uncompromising value to all.”
The price drops will run throughout January with products available in-store and online.
Morrisons expands Price Match with Aldi and Lidl.
Morrisons has started the New Year by expanding its Price Match with Aldi and Lidl to include over 500 everyday essentials and best-selling products.
Available both in-store and online, price matched items include products such as single cream, pasta sauce, locally sourced carrots, semi-skimmed milk, rice, cheese, and tins of chopped tomatoes.
Gareth Lloyd, head of price at Morrisons, said: “We’re starting 2025 by doubling down on value for our customers.
“Expanding our Price Match means more of the essentials and brands customers love at the prices they expect, with the quality they trust from Morrisons.
“This builds on the savings and rewards we’ve introduced throughout the year – from price cuts to better deals for our More Card members. It’s all about helping shoppers get more for their money.”
The supermarket launched its Price Match scheme in February last year. At the time, it included over 200 products like corn flakes, baby wipes and bread, as well as a range of household essentials such as anti-bac spray, bleach and toilet rolls.
Poundland adds 900 products to its £1 or less range.
Poundland has introduced a further 900 products to its £1 or less range as well as lowered the prices on hundreds of items as part of its commitment to delivering value to customers.
The move means the discounter now offers almost 2,400 products in its UK stores within that price range, which extends to more than 4,000 when including its clearance ranges.
It added that it would deliver over 200 savings through its new app, Poundland Perks, that launched last October and has 2.2m downloads.
The retailer has also launched “significant” price drops across its grocery, home and clothing ranges, lowering the cost of some products by as much as 50%.
Poundland commercial director CJ Antal-Smith said: “According to the Bank of England, Poundland should be £2.42-land today, based on the way inflation has risen since it opened its first store 35 years ago.
“But Poundland is all about defying inflation and delivering amazing value and our customers are being very clear that they need us to be at our best in 2025 in the face of continued pressure on household budgets.
“We know that’s our job, and we’ll do all we can to deliver the promise of amazing value on the items they need.”
Co-op accelerates convenience growth with 75 new stores planned to open in 2025.
Co-op has revealed its commitment to continued convenience growth with a planned 75 new stores opening this year (2025), across the UK.
The new stores will be both Co-op estate stores and Co-op franchise stores, a sector the convenience retailer has actively pursued recently with strong growth. In addition to the new stores, around 80 further stores will undertake major refurbishments in 2025, transforming the stores to maximise the potential of Co-op’s existing portfolio of properties.
Convenience is Co-op’s core area of expertise, with its stores going far beyond just offering traditional groceries, with added services designed to create a destination and community hub including parcel collection and returns; payment services and operating as a hub for Co-op’s leading online quick commerce operation.
In addition, Co-op’s stores provide a window on to high streets for the growth of its front-of-store digital media screens and, a focal point to bring to life the social, economic and democratic benefits of membership, including Co-op’s focus on creating additional value in communities through member-price savings and, its members having a say in how Co-op makes a difference locally with local community causes.
Co-op’s plans for new stores in 2025 include up to 25 new Co-op operated stores – with the first new Co-op stores to open in early 2025 in: Salford Quays – The Anchorage and East Benton – Newcastle Upon Tyne.
Furthermore, up to 50 stores are expected to open and operate as a franchise this year (2025) - enabling Co-op to bring its products and the benefits of membership to more communities and operate in locations where it may not otherwise be able to access. The move builds on Franchise growth in 2024 which included innovative new locations where Co-op shares its convenience expertise with quality partners. Last year saw Co-op franchise stores open on more university campus; a first for Co-op with a store opening in a hospital, on petrol forecourts (in partnership with EG On the Move), plus a Co-op store at HMS Collingwood (in partnership with ESS) to enhance the lived experience of service personnel.
Up to an additional 80 existing stores will also undertake major refurbishments in 2025, maximising the potential of Co-op’s existing portfolio of properties to serve and support communities, and creating stores which are fit for the future while ensuring Co-op maintains a store in every postal area. Stores set to re-launch following major makeovers in early 2025 include those in Exeter; Brighton; Bristol; Cambridgeshire; Hampshire; Avonmouth; Hereford and Clapham.
Co-op continues to look for new freehold and leasehold space as it maintains its momentum in convenience.
Co-op stores act as micro-distribution hubs for its online home delivery operation – with Co-op’s model seeing orders picked fresh in local stores and delivered quickly and conveniently in the community so that the high street store benefits from online orders. Co-op is working to grow its share of the quick commerce market to over 30% by focusing on both its own Co-op platform (shop.coop.co.uk) and with its partners including Just Eat, Uber Eats and Deliveroo. Co-op has been named top grocer across all major delivery platforms, and stores in more communities will further support ecommerce reach and growth. Plus, as part of Co-op’s commitments to carbon reduction, it has announced ambitions to install up to 76,000 solar panels on up to 700 of its sites across its food, funeral care and logistic portfolio over the next three years.
Co-op is on track to achieve its ambition of growing to eight million members by 2030, with new stores bringing the benefits of membership, including member savings, to more local communities.
Morrisons launches new online on-demand pharmacy service.
Morrisons has launched an online private prescription service enabling shoppers to order medication for a range of different health and lifestyle requirements.
Introduced in partnership with online pharmacy Phlo and accessed via the supermarket’s website, the Morrisons Clinic service requires customers to complete an online questionnaire that will be used to assess their suitability for their chosen medication.
If approved by Phlo’s healthcare professionals, the prescription will be sent to the customer via Royal Mail Tracked 24.
Conditions supported by the grocer‘s clinic range from acid reflux, acne, erectile dysfunction and hair loss to hay fever, migraine and premature ejaculation. The service also offers contraceptives and products for the menopause, weight loss and period delay.
Morrisons head of service John Parry said: “We know how frustrating it can be waiting to see your GP for an appointment, so we’re delighted to be launching the Morrisons Clinic.
“Our customers will now be able to order medication for a number of different health and lifestyle conditions quickly and conveniently, all at competitive prices.”
The service is currently only available to customers in England.
Ocado expands health and wellness offering through Holland & Barrett partnership.
Ocado Retail is expanding its health and wellness offering through a new partnership with Holland & Barrett.
The move will see the online grocer add hundreds of selected Holland & Barrett items to its product line-up in the coming weeks across the categories of vitamins, supplements, food, beauty and sports nutrition.
Amit Chitnis, Ocado’s chief commercial officer said: “We already have a great range of health and wellness products – including branded, Ocado Own Brand and of course M&S – but with many customers looking for even more choice in this area, we are delighted to now add Holland & Barrett, a specialist in this space and a well-respected and trusted high street retailer.
“Whether it’s adding vitamins and minerals staples to the weekly shop, discovering products such as vitamin B6 and magnesium in trending areas like women’s health, friendly bacteria for the gut microbiome or sports supplements tailored to your workout, we hope this partnership will make it easier than ever for customers to shop for their holistic wellbeing and reach their goals.”
Other products in the 300 strong range will include items such as castor oil, lion’s mane mushroom, Omega 3 fish oil, high strength turmeric and cod liver oil.
Guy Farmer, Holland & Barrett’s commercial trading director UK&I, said: “The partnership with Ocado is an exciting moment for our business as we look to make health and wellness a way of life for everyone, adding quality years to life.
“This is just the first step in what we see as a strategic partnership for H&B and represents a key part of our ambitious transformation strategy, as we look to become our customers’ first choice for wellness products, advice and solutions.”