Sainsbury’s expands with acquisition of Ten Homebase stores

UK – Sainsbury’s, British retail giant has expanded its footprint with the acquisition of ten leasehold stores from HHGL, trading as Homebase.

The new stores, previously operated as Homebase outlets, will be converted into Sainsbury’s supermarkets, enhancing the retailer’s reach and availability.

The acquisition includes Homebase locations in Birmingham Sutton Coldfield, Bromsgrove, Cromer, Derry/Londonderry, Fareham, Inverurie, Lowestoft, Newark, Omagh, and Rugby.

Once converted, these sites will feature store floor areas ranging from approximately 15,000 to 40,000 square feet, contributing an additional 235,000 square feet of trading space to Sainsbury’s supermarket network.

This expansion is set to bring Sainsbury’s products within a 10-minute drive for around 400,000 more people, bolstering its presence in key target locations.

The total investment for this acquisition, including lease costs, acquisition premiums, and fit-out expenses, is estimated at US$170.2 million. The conversion process is anticipated to create approximately 1,000 new roles within Sainsbury’s.

Meanwhile, Sainsbury’s has pledged to guarantee interviews for the Homebase employees who may face redundancy due to this transaction.

The move is part of Sainsbury’s ‘Next Level Sainsbury’s’ plan, aimed at broadening its food offering and increasing accessibility for customers across England, Northern Ireland, and Scotland.

Simon Roberts, CEO of Sainsbury’s, expressed enthusiasm about the expansion, highlighting the company’s ongoing success and growth strategy.

“Sainsbury’s food business continues to go from strength to strength as we push ahead with our ‘Next Level Sainsbury’s’ plan,” Roberts said.

He emphasized the retailer’s focus on offering a compelling mix of value and quality, which has helped attract customers from competitors and drive consistent growth.

“Our ambition is to be customers’ first choice for food,” he added, noting that the new stores will showcase Sainsbury’s offerings to even more communities.

The transaction is expected to finalize in early September, with the first of the newly converted stores scheduled to open next summer.

Sainsbury’s aims to complete the conversion of all ten sites by the end of 2025, marking a significant milestone in its expansion efforts.

In related news, Sainsbury’s and other major supermarkets have faced criticism for transitioning to card-only payment options in many stores.

While most supermarkets still accept cash at the majority of their locations, Sainsbury’s has introduced card-only outlets in some areas.

The supermarket chain maintains that the majority of its stores continue to accept cash, though the exact number of cashless locations remains unspecified.

This shift has prompted warnings for shoppers who rely on cash payments, highlighting the ongoing changes in retail payment methods.