Tesco begins new partnership with Homebase in the UK

“Having freed up space by axing entertainment products such as CDs and DVDs from its in-store proposition, Tesco is making a bigger play for home," says GlobalData's Kate Omrod

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22 March 2022 | 0

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In the UK, a new partnership has begun between Tesco and home and garden retailer Homebase, with the grocery giant opening its first Homebase concession last weekend.

The 4,500 sq ft Borehamwood location is the first of four in-store concessions which will be selling home and garden products from Tesco Extra stores across the country.

Kate Ormrod, principal retail analyst at GlobalData, a leading data and analytics company, believes the move forms part of an “apt strategy”.

“With 73% of Homebase DIY shoppers buying food and grocery from Tesco*, the deal will bring greater convenience for Homebase’s existing shoppers, while also opening it up to a new customer base – and making it more appealing to lapsed female shoppers,” Omrod said.

“The deal emulates that of B&Q and Asda, and given the consumer spend shift to food and groceries amid the rising cost of living, the concession partnership will ensure Homebase is in the right place as footfall at non-essential retailers suffers.

“Having freed up space by axing entertainment products such as CDs and DVDs from its in-store proposition, Tesco is making a bigger play for home, making its offer more well-rounded,” she added. “Doing so by partnering with home-related specialists, including AO, is an apt strategy, giving shoppers the expertise it is not best-placed to provide and cementing stores’ destination appeal.”

 

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