Sainsbury’s to convert ten Homebase stores into supermarkets including Aberdeenshire site, creating 1,000 jobs

A large Aberdeenshire DIY store is among ten Homebase sites set to be converted into Sainsbury’s supermarkets, creating hundreds of jobs.

The grocery giant said it has reached an agreement to acquire the ten leasehold stores, including one in north-east town of Inverurie, from HHGL, trading as Homebase. It noted that the acquired stores were in “key target locations” that would grow Sainsbury's supermarket coverage across England, Northern Ireland and Scotland.

Once they are converted, the shop floor area of the stores will range from about 15,000 square feet to 40,000 square feet. The addition of the new locations means that nearly 400,000 more people will be within a ten-minute drive of a Sainsbury's supermarket, bosses noted.

Sainsbury's said the expansion of its footprint would lead to the creation of hundreds of supermarket roles.

Sainsbury’s - a former owner of Homebase - will open the first of the stores next summer and aims to complete the conversion of all sites by the end of 2025.

The overall investment value of the acquisition, being the total capitalised cost of leases, acquisition premium and fit-out costs, is expected to be about £130 million. The conversion of the sites into supermarkets is expected to create about 1,000 jobs. Sainsbury’s said it would guarantee an interview for any Homebase colleague who is placed at risk of redundancy as a result of the transaction.

Simon Roberts, chief executive of Sainsbury’s, which also owns Argos, said: “Sainsbury’s food business continues to go from strength to strength as we push ahead with our ‘Next Level Sainsbury’s’ plan. 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,” he added. “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.”

Waitrose’s £1 billion gamble: Millions more Scottish shoppers to get alternative to Tesco, Morrisons and M&S