Sainsbury’s Expands Footprint with Acquisition of 10 Homebase Stores for Supermarket Conversions

Sainsbury’s has secured a deal to acquire 10 leasehold properties from Homebase, with plans to convert them into supermarkets. These strategic locations are spread across England, Northern Ireland, and Scotland, aligning with Sainsbury’s goal of expanding its presence in key areas.

Once transformed, the new supermarkets will feature shop floors ranging between 15,000 and 40,000 sq ft, collectively adding 235,000 sq ft to Sainsbury’s trading space. The acquisition is set to be finalised by early September, with the first store expected to open next summer. Sainsbury’s aims to complete all conversions by the end of 2025.

The retailer has earmarked approximately £130m for this investment, covering the total capitalised cost of leases, acquisition premiums, and fit-out expenses. Sainsbury’s anticipates strong financial returns from these stores, with return on capital employed expected to be comfortably in the low teens, surpassing its cost of capital.

Simon Roberts, CEO of Sainsbury’s, stated: “Our food business continues to gain momentum as we advance with our Next Level Sainsbury’s strategy. We offer the best combination of value and quality in the market, attracting customers from our key competitors and consistently growing our volume market share. Expanding our supermarket footprint is a key part of our strategy to become the first choice for food across the UK, and these new stores will allow us to serve even more communities.”

The Homebase stores set to become Sainsbury’s supermarkets are located in: