Partner event review

CONFIDENTIAL
Paul Loft
Managing Director, Homebase
12 September 2011
A differentiated proposition
Confidence in market positioning and performance
¾ Comprehensive offer and clearly differentiated
¾ Over 38,000 products – branded, own brand and
exclusive
¾ 5 broad areas – Decorating, DIY, Big Ticket, Home,
Garden
¾ Known for offering stylish products
¾
¾
1
High quality service
¾
Good in-store service from engaged staff
¾
Reliable and cost effective home delivery
¾
Award winning installation service
Promotions and loyalty programme
¾
Promotional days, strong department promotions
¾
Internet marketing of growing importance
¾
7m active Nectar customers
Sales mix
‘Garden’
‘Decorating’
(garden
maintenance,
outdoor living,
horticulture,
seasonal, etc)
(paint, woodcare,
wallcoverings, tiling,
flooring, etc)
24%
18%
‘Home’
(lighting, cookshop,
bathroom accessories,
storage, soft furnishings,
accessories, etc)
23%
15%
20%
‘DIY’
(tools, hardware,
materials, decorative
fittings, core
electricals, plumbing,
etc)
‘Big Ticket’
(kitchens, bathrooms,
bedrooms, furniture,
fireside, etc)
52 weeks to 26 February 2011
Our vision will move Homebase into an own-able space
Design
Inspirational
Emotional
Heavy DIY
High DIY
Skill
2
is uniquely placed to seize this
opportunity
Generic
Commoditised
Functional
Soft/ Finishing
Touches
Low DIY skill
Our proposition focuses on a decorating led offer
Homebase mission
Homebase helps
you transform
your home and garden
Homebase differentiators
Better by design
More ideas and inspiration
“Stylish, innovative products you can’t find anywhere else;
products that are easier to use”
“A place that helps co-ordinate colours and styles; friendly,
knowledgeable staff; even more support on the web”
Homebase product strategy
First for Decorating
Great for Garden
Great for Big Ticket
Good for Everyday Repair & Maintenance
Basic customer requirements
Fair Prices Great Value
Trusted Availability
Easy To Shop
Do It For Me
3
Delivering the Proposition
Range by Range
¾ Step change critical ranges
¾ Eg Interior store, Hardware, Plumbing, Flooring, Tiling
¾ In all stores
¾ Mezzanine
Store Zones
¾ Garden Centre
¾ Prototypes ready for rollout
Total Store
4
¾ Total store solution
¾ Refining post Aylesford
CONFIDENTIAL
Aylesford Store
Front of store & foyer
¾ Clean front of store with inspiring lifestyle
images that change quarterly
¾ Room-set displays and Recipe cards in foyer to
inspire customers
¾ Navigation – clear eye-line through the store
¾ Sense of Transformation – 1st for Decorating
6
1st for Decorating: Decorating Centre
¾ Trained colleagues available to give practical ideas
& advice for Decorating projects
¾ Touch screen technology and internet site
available to check stock
¾ 1500 colours available through own label and key
brands
7
1st for Decorating: Exclusive brand presence
¾ Exclusive brands include Home of Colour (own brand),
Farrow & Ball, Laura Ashley, Crown Vintage, Dulux
Origins and Sanctuary
¾ Ranges expand into wallpaper
¾ Decorating centre re-enforces colour as the start of the
decorating journey
8
1st for Decorating: Home range review & room-sets
¾ The Home range review has introduced 1500 new products for Autumn /
Winter 2011, including 900 in the new Home of Style range
¾ Products have been pulled together across categories to create a unified look
for different spaces in the house and garden – ‘one stop shop’
¾ Room-sets provide inspiration in key areas – decorating zone, foyer and
mezzanine
9
1st for Decorating: Recipe Cards & Poster Boards
¾ To further help inspire customers, recipe cards and poster boards
are in the foyer area and decorating zone to provide Inspiration
and an achievable end look
10
1st for Decorating: New ranges to support proposition
¾ Completely new range of rugs
¾ Significantly enhanced ranges of frames,
mirrors and wall art
11
Great for Big Ticket
¾ New kitchen displays including a new premium range called Odina
¾ Increased space for fitted bedrooms (premium brand Now!Hulsta on test)
¾ Furniture – displayed within room-sets with wallpaper / homewares options
¾ Go Create upholstery brand
¾ Schreiber brand in furniture
¾ Coffee shop – customers want the benefit of dwelling time
12
Expanding installation services
¾ Building on the success of kitchen installations to offer more services
¾ Drives Average Transaction Value and attachment
¾ Kitchens and Bathrooms – all stores
¾ Fitted Bedrooms – 200 stores
¾ Market leading service (over 90% recommendation rate)
¾ New services in test
13
Great for Garden: Advice Centre & Room Sets
¾ New layout with greater focus on plants and pots
¾ Low level fixtures ease browse-ability
¾ New Garden Advice centre where colleagues give practical ideas & advice including plant finder tools
¾ Room sets provide Inspiration and an achievable end look, with products clearly positioned nearby
¾ Reinforces that Homebase has the complete offer for outdoor space as well as indoor space
14
Great for Garden: Differentiation & trade-up: Jamie Oliver exclusive brand license
The Jamie Oliver idea of ‘keep it simple’ is an accessible way to achieve better results. Products offer
a point of difference, but are based around Jamie’s cooking heritage.
2011
¾ Grow Your Own
¾ Bulbs & Seeds
¾ Plants
¾ Growing Media
¾ Outdoor cooking
¾ Barbeque
15
2012 Opportunity
¾ More Bulbs, Seeds and Plants
¾ Garden Hand tools
¾ Increased Home / gift range
Good for Everyday Repair & Maintenance: Creating a shop
¾ Create a sense of a shop – to support everyday repair
and maintenance
¾ DIY experts on hand to help with projects
¾ New timber display frees up space for customers to
browse
¾ Clear signage with lighter racking & low level navigation
16¾
Hardware improved adjacencies and ease of shopping
Tills and Service Area
¾ Create a clean front of store with inspiring images
that change on a quarterly basis
¾ Clearly segregate two different journeys at Service
Desk
¾ Speedy pick up of online reserved products – on
hand for customers to pick up using allocated bays
outside
17
Service – 3 T’s
Team
¾ Leadership team handpicked as
the best to deliver the customer
service proposition
¾ Specialists have been recruited
and trained that have skills and
knowledge
¾ DIY expert
¾ Horticulture expert
¾ Decorative expert
¾ Showroom consultants
¾ Flooring & Tiling expert
¾ An age diverse workforce with
more female colleagues available
to advise customers
18
Training
¾ All colleagues receive basic
training:
¾ Service skills
¾ body language,
acknowledgement
¾ Knowledge skills
¾ painting & decorating,
use of colour, flooring &
tiling
¾ Expert colleagues receive
advanced level :
¾ National Open College
Network Qualification
(Painting & Dec, Colour and
Interior design)
¾ Supplier specific support eg
Westco, Henkel, Farrow &
Ball
Technology
¾ Headsets
¾ Blackberry Devices
¾ Internet access
¾ Plant Finder touch screen
¾ Interactive Decorating touch-
screen
Customer feedback
Key measures of satisfaction (%)
90
80
78
76
70
55
60
50
48
35
40
30
16
20
10
0
Overall rating (%
outstanding/ v good)
vs. other HB (% much/ little
better)
Aylesford wave 2
19
Recommendation (9 or 10/
10)
Horsham
Key positive feedback about staffing, browse-ability,
inspiration & ranging
20
Top 2 box score (Outstanding/ very good rating)
Excluding those that said ‘DK’
Question: Rate each of the following aspects (Q8a)
Delivering the Proposition
Range by Range
¾ Step change critical ranges
¾ Eg Interior store, Hardware, Plumbing, Flooring, Tiling
¾ In all stores
¾ Mezzanine
Store Zones
¾ Garden Centre
¾ Prototypes ready for rollout
Total Store
21
¾ Total store solution
¾ Refining post Aylesford
Homebase summary
22
¾
Strong, well positioned brand
¾
Brand metrics at record levels
¾
Broad range of initiatives to drive growth
¾
Recovery potential clearly demonstrated
¾
Investing to continue momentum