Sainsbury’s has acquired leaseholds to convert 10 Homebase stores into new Sainsbury’s supermarkets.
The agreement with Homebase owner HHGL is expected to be completed by September. Sainsbury’s expects the total cost of the acquisition and refit to be £130m.
All sites ranged between 15,000 and 40,000 sq ft, and were in key “target locations” across England, Northern Ireland and Scotland.
All 10 stores are in locations that currently do not have a Sainsbury’s supermarket. The retailer has pledged to offer interviews to all Homebase staff affected by the conversion.
Once converted, Sainsbury’s anticipates the stores will add 235,000 sq ft to its total footprint, extending its reach to an additional 400,000 customers.
Sainsbury’s said it aimed for all 10 stores to be opened by the end of 2025.
“Sainsbury’s food business continues to go from strength to strength as we push ahead with our Next Level Sainsbury’s plan,” said Sainsbury’s CEO Simon Roberts.
“We have the best combination of value and quality in the market and that’s winning us customers from all our key competitors and driving consistent growth in volume market share.
“We want to build on this momentum, which is why we are growing our supermarket footprint. Our ambition is to be customers’ first choice for food and these new stores will showcase some of the best that Sainsbury’s supermarkets have to offer to even more communities around the country.”
The retailer already has plans in place to grow its store estate, having outlined an ambition in February to add a further 75 Sainsbury’s Local convenience stores.
The new acquisitions mark the latest chapter in what has been a long association between Sainsbury’s and Homebase, which the supermarket co-founded in 1979.
Sainsbury’s later sold the Homebase chain for £969m. In 2016, Sainsbury’s acquired Argos and Habitat from then Homebase owner Home Retail Group.
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