Home Retail Group
| Company type | Public limited company |
|---|---|
| Industry | Retail |
| Predecessor | Argos Retail Group (ARG) |
| Founded | October 10, 2006 |
| Defunct | September 2, 2016 |
| Fate | Acquired by Sainsbury's |
| Headquarters | United Kingdom |
Area served | United Kingdom, Ireland, China (via joint venture) |
| Products | Argos, Homebase, Chad Valley, Habitat, Alba, Bush, Hygena, Schreiber, Challenge, Sovereign, Cookworks, Heart of House |
Home Retail Group plc was a UK-based retail enterprise established on 10 October 2006, following the separation of Argos Retail Group (ARG) from GUS plc. It was publicly traded on the London Stock Exchange (LSE).
The company primarily consisted of two main retail brands: Argos and Homebase, along with proprietary labels such as Chad Valley and Habitat. In April 2007, it acquired an interest in the Irish chain 'Home Store + More', expanding its footprint in the UK market before ultimately closing the stores in 2012 and divesting the stake in 2013.
In February 2016, Home Retail Group divested Homebase to the Australian retailer Wesfarmers. Subsequently, in April 2016, it revealed plans for a £1.4 billion acquisition by the British supermarket operator Sainsbury's.
Origins as Argos Retail Group (2000–2006)
GUS plc acquired Argos in April 1998 and combined it with its mail order division to create Argos Retail Group (ARG) in June 2000. ARG further expanded by purchasing Homebase for £900 million in November 2002.
In June 2005, GUS acquired thirty-three outlets from Index, converting these locations into Argos stores.
Home Retail Group era (2007–2016)
Following its separation from GUS in July 2006, Argos Retail Group was rebranded as Home Retail Group. The company's shares commenced trading on the London Stock Exchange on 11 October 2006.
In October 2007, Home Retail Group bought 27 stores from Focus DIY, which were subsequently rebranded as Homebase outlets. In June 2011, it secured exclusive rights for the Habitat brand across the UK and Ireland, acquiring its designs, intellectual property, three London-based stores, and online presence.
In November 2015, the group declined a £1 billion acquisition proposal from supermarket chain Sainsbury's, which became public in January 2016. On 18 January 2016, Home Retail Group agreed to sell Homebase to Australian company Wesfarmers for £340 million, pending shareholder consent; the transaction concluded on 27 February 2016.
Acquisition by Sainsbury's (2016)
On 2 February 2016, Sainsbury's presented an improved offer of £1.3 billion with a deadline set for 23 February. This was followed by a competing bid of £1.4 billion from Steinhoff International on 19 February; however, Steinhoff withdrew its proposal on 18 March. Sainsbury's then submitted a formal offer of £1.4 billion. On 1 April 2016, Home Retail Group accepted Sainsbury's takeover bid, which was finalized on 2 September 2016.
Operations
The primary retail divisions of Home Retail Group—Argos and Habitat—operated more than 800 locations throughout the UK and Ireland.
The company maintained a 49% ownership interest in HH Retail Limited, a multi-channel general merchandise retailer based in China, in partnership with Haier Group, which held the remaining 51%. Additionally, Home Retail Group sold its 33% stake in Ogalas Limited (the operator of 'home store + more' in Ireland) on 8 March 2013.
Home Retail Group managed several well-known brands including Alba, Bush, Chad Valley, Habitat, Hygena, Schreiber, Challenge, Sovereign, Cookworks, and Heart of House.
Financial performance
The financial data presented pertains to the Group’s fiscal years, which conclude around late February or early March.
According to the terms of the acquisition deal with Sainsbury's, shareholders of Home Retail Group were entitled to receive 0.321 newly issued Sainsbury’s shares along with 55p per share. Additionally, following the disposal of Homebase, shareholders were granted a further 25p per share in addition to the final dividend for that year.
| 52/53 weeks ended | Turnover (£m) |
Profit/(loss) (£m) | Basic earnings per share (p) | |
|---|---|---|---|---|
| before tax | ||||
| 27 February 2016 | 5,668.0 | 94.7 | (808) | 2.8 |
| 28 February 2015 | 5,710.4 | 93.8 | 71.6 | 9.4 |
| 1 March 2014 | 5,663.0 | 71.2 | 54.0 | 6.8 |
| 2 March 2013 | 5,475.4 | 130.1 | 94.0 | 11.7 |
| 3 March 2012 | 5,582.8 | 104.1 | 72.8 | 9.1 |
| 26 February 2011 | 5,851.9 | 265.2 | 190.9 | 23.1 |
| 27 February 2010 | 6,022.7 | 293.0 | 209.8 | 24.3 |
| 28 February 2009 | 5,897.4 | (394.2) | (413.1) | (47.7) |
| 1 March 2008 | 5,984.8 | 426.0 | 294.6 | 34.0 |