Home Retail Group Sells Homebase to Focus on Digital Argos
In order to focus on its digital transformation plan for Argos, Home Retail Group has announced its plans to sell off Homebase.
The firm has been in talks with Wesfarmers Ltd, an Australian firm, to sell the home DIY branch despite plans to pursue a digital transformation similar to Argos.
Chief executive of Home Retail Group, John Walden, said: “We are in advanced discussions to sell Homebase, which would provide good value for shareholders and a growth opportunity for Homebase colleagues.
“The transaction would allow the group to focus on Argos and its transformation plan, with an improved balance sheet and financial position, which I believe would represent an even greater opportunity for building long-term shareholder value.”
The recent initiatives from Argos failed to boost sales over the Christmas period, with like-for-like sales down 2.2% from the year before.
Last year Argos opened 44 digital kiosks inside Homebase and Sainsbury’s stores to allow customers to order popular products for same-day pick up.
Argos saw growth in total sales as well as an increase in digital sales as a result of the launch of its Fast Track services, allowing customers to order products online for same-day delivery.
As a result of its digital offerings Sainsbury’s said Argos has “strong multi-channel capabilities and infrastructure” which would enable Sainsbury’s to offer more flexibility to customers through online, mobile and click and collect channels.