The size of the UK home
and general merchandise
retailing market.
Home Retail Group’s
market share.
Our key strengths
The following strengths show how Home Retail Group is well positioned as one of the leaders in the UK retail market.
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The market leader
With sales of nearly £6bn in the past financial year, Home Retail Group is the leading home and general merchandise retailer in the UK.
Although we are already the number one in many of our product categories, there is still potential to increase our market share. Our combined position accounts for just 10% of a market valued at £60bn. As many of these markets are fragmented and our market share has built quickly, there are further opportunities for growth.
We are using our retail knowledge and experience to maximise our operational efficiency and strengthen our competitive position. Initiatives in this area include trials of different store formats and ongoing programmes of store improvements.
As we offer multiple product categories via store and non-store channels, we are well placed to serve the changing needs of consumers.
Two strong retail brands with large customer bases
As the UK’s leading general merchandise retailer and an icon among consumers, Argos is known for offering choice, value and convenience across a broad range of product categories. Homebase is the UK’s second largest home improvement retailer, increasingly known for providing an extensive, more style-led range of merchandise across the broader home enhancement market.
Both retail brands are well placed to meet changes in customer preferences because of their emphasis on customer service and product choice. They are also extending their reach into underpenetrated customer areas and developing tailored formats to serve specific local catchments.
Our Financial Services business drives sales and customer loyalty for both Argos and Homebase. A range of credit and insurance products are available to customers in-store, by telephone and online, making our retail products more affordable and providing customers with additional peace of mind. With more than 1.1 million active store card customers, we are one of the largest store card providers in the UK.
Great choice and value
Customers of Argos and Homebase have access to a massive range of goods at competitive prices.
The breadth and diversity of our product range, across multiple categories and with significant overlap between Argos and Homebase, should help to support sales in the event of a consumer slowdown. While some markets may contract, certain product categories should grow due to technological advances and replacement cycles.
The choice and value of our product range continues to expand for both retail brands. As a multi-channel retailer, Argos is able to offer its customers a level of choice within each product category that is hard to beat. Homebase also offers a wide choice within the product ranges that it sells.
The introduction of mezzanine floors at Homebase stores was part of a wider initiative to maximise store space and allow more lifestyle–led products such as kitchens, bathrooms and furniture to be displayed more effectively. Argos is also trialling the use of product displays for certain key ranges.
The Group’s scale benefits allow highly advantageous price positioning for both retail brands. Argos competes on price, offering customers low cost products. Homebase has a more promotionally-led stance supported by its Spend & Save programme and promotional events.
Additional services help to maximise brand appeal and drive sales for both businesses. Argos has a market-leading home delivery offer, both in terms of service and value for money. Homebase is increasingly offering end-to-end support for home enhancement projects, with kitchen design and installation services available in all stores.
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