Home Retail Group
Corporate brand
UnclaimedBritish home and general merchandise retail group that owned Argos and Homebase before being acquired by Sainsbury's in 2016.
Last updated August 31, 2026
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Overview
Home Retail Group was a British retail company formed in 2006 through the demerger of Argos Retail Group from GUS plc. Its principal businesses were Argos, a catalogue-based and increasingly digital general-merchandise retailer, and Homebase, a home-improvement and garden retailer. The group also controlled or licensed a range of private-label and heritage brands, including Chad Valley, Habitat, Bush, Alba, Cookworks, Hygena, Schreiber, Challenge, Sovereign and Heart of House. The group's origins lay in GUS's acquisition of Argos in 1998 and the subsequent creation of Argos Retail Group in 2000 by combining Argos with GUS's mail-order operations. Homebase was added in 2002, giving the combined business exposure to both general merchandise and home improvement. Argos Retail Group was renamed Home Retail Group when it was separated from GUS in 2006, and Home Retail Group shares began trading on the London Stock Exchange in October of that year. Home Retail Group developed a multichannel retail model based on stores, catalogues, websites, collection points and home delivery. Argos was particularly associated with its catalogue and order-and-collect format, while Homebase operated larger stores selling tools, building materials, furniture, kitchens, bathrooms, garden products and related home-improvement goods. The group expanded its portfolio through store acquisitions and brand investments, including the acquisition of selected Focus DIY stores for conversion to Homebase and the purchase of UK and Irish rights to the Habitat brand in 2011. It also held a minority interest in a Chinese general-merchandise joint venture with Haier. The company operated in a rapidly changing retail environment in which catalogue retail was shifting toward online ordering, mobile commerce and fast fulfilment. Although Argos remained the group's central growth asset, the portfolio was reshaped during 2016. Homebase was sold to Australia's Wesfarmers for £340 million, with completion on 27 February 2016. Home Retail Group then accepted a takeover by Sainsbury's after a contested process that also involved a rival proposal from Steinhoff International. The Sainsbury's transaction was completed on 2 September 2016. Home Retail Group consequently ceased to exist as an independent listed company, while Argos became part of the Sainsbury's group. Its history represents the consolidation of British multichannel retail and the transition of a formerly catalogue-led business into digitally enabled store-based commerce.
History
Home Retail Group emerged from the restructuring of GUS plc's retail assets. GUS acquired Argos in April 1998 and combined it with its mail-order interests in June 2000 to create Argos Retail Group. The group broadened its home-related retail presence by acquiring Homebase for £900 million in November 2002. In June 2005, it also bought 33 Index stores, which were subsequently converted into Argos locations. Argos Retail Group was separated from GUS in 2006 and renamed Home Retail Group. The company was established on 10 October 2006, and its shares began trading on the London Stock Exchange on 11 October. The new group was built around two distinct but complementary retail formats: Argos, focused on general merchandise and catalogue-led ordering, and Homebase, focused on home improvement, furnishing and gardening. The group continued to adjust its store portfolio. In October 2007, it acquired 27 stores from Focus DIY and converted them to Homebase outlets. In April 2007, it bought a stake in the Irish Home Store + More chain and established its own business there, although it later closed its UK operation and sold its interest in 2013. In June 2011, Home Retail Group acquired exclusive rights to the Habitat brand, its designs and intellectual property in the United Kingdom and Ireland, together with three London stores and the brand's website. Habitat therefore became part of the group's brand portfolio while retaining a distinct design-led identity. Home Retail Group also pursued international and partnership activity. It held a 49% interest in HH Retail Limited, a Chinese multichannel general-merchandise business operated with Haier Group, which held the remaining 51%. Alongside its principal retail banners, the group owned or managed a collection of private-label and heritage names, including Chad Valley, Bush, Alba, Cookworks, Hygena, Schreiber, Challenge, Sovereign and Heart of House. The company's business model combined physical stores with catalogues, websites, collection services and delivery. Argos's order-and-collect system was especially important to its identity, allowing customers to select products remotely and collect them from stores. The model evolved as online and mobile shopping became more important, while Homebase remained exposed to the competitive and cyclical characteristics of home improvement. In late 2015 and early 2016, the group became the subject of takeover interest from Sainsbury's. Home Retail Group initially rejected a proposal reported at approximately £1 billion. Homebase was separately sold to Wesfarmers for £340 million, with completion on 27 February 2016. Sainsbury's subsequently submitted a formal £1.4 billion offer, while Steinhoff International made a rival proposal that it later abandoned. Home Retail Group agreed to Sainsbury's offer on 1 April 2016, and the acquisition completed on 2 September 2016. The independent listed company was thereby dissolved into Sainsbury's corporate structure, with Argos continuing as a major Sainsbury's retail business.
- 2016
Homebase is sold to Wesfarmers
[1]The sale of Homebase to Wesfarmers for £340 million was completed on 27 February.
- 2016
Sainsbury's takeover is completed
[1]Sainsbury's completed its acquisition of Home Retail Group on 2 September, ending the group's independent listed status.
- 2011
Habitat rights are acquired
[1]The group acquired exclusive UK and Irish rights to the Habitat brand, its designs and intellectual property, together with three London stores and its website.
- 2007
Focus DIY stores are converted to Homebase
[1]Home Retail Group acquired 27 Focus DIY stores and converted them to the Homebase format.
- 2006
Home Retail Group is established
[1]Argos Retail Group was demerged from GUS and renamed Home Retail Group.
- 2006
Shares begin trading on the London Stock Exchange
[1]Home Retail Group shares began trading on the London Stock Exchange on 11 October.
- 2002
Homebase joins Argos Retail Group
[1]The group acquired Homebase for £900 million, adding a major home-improvement and garden retail operation.
- 2000
Argos Retail Group is formed
[1]GUS combined Argos with its mail-order business to create Argos Retail Group.
- 1998
GUS acquires Argos
[1]GUS plc acquired Argos, establishing the corporate foundation for the later Argos Retail Group and Home Retail Group.
Products and positioning
Multichannel British home and general-merchandise retail group
General merchandise retail
Argos
Argos was Home Retail Group's principal general-merchandise retailer. It sold products including consumer electronics, toys, furniture, household goods, appliances and seasonal merchandise. Its distinctive model combined stores with catalogue and online ordering, enabling customers to reserve products for collection or arrange delivery. Argos's extensive store network and order-and-collect infrastructure made it the group's most important multichannel retail platform.
Home improvement and garden retail
Homebase
Homebase was the group's home-improvement and garden retail chain. Its range covered tools, building and decorating supplies, kitchens, bathrooms, furniture, garden products and related household goods. Homebase operated in a larger-store format than Argos and provided the group with exposure to project-based home renovation and garden spending. It was sold to Wesfarmers in 2016.
Furniture and home design
Habitat
Habitat was a design-led home furnishings brand whose UK and Irish brand rights, designs and intellectual property Home Retail Group acquired in 2011. The transaction also included three London stores and the brand's website. Habitat complemented the group's broader home retail portfolio with a more design-oriented proposition covering furniture and household interiors.
Toys and children's products
Chad Valley
Chad Valley was one of Home Retail Group's in-house and heritage brands. It was associated primarily with toys and children's products sold through the group's retail operations, particularly Argos.
Household, electronics and home products
Home Retail Group private-label portfolio
The group owned or used a range of private-label names spanning electronics, appliances, furniture, tools and household goods. The listed portfolio included Alba, Bush, Cookworks, Hygena, Schreiber, Challenge, Sovereign and Heart of House. These labels supported differentiated ranges across Argos and Homebase and supplemented third-party branded merchandise.
Brand decisions
2016
Sale of Homebase to WesfarmersM&ABackground
Home Retail Group was reshaping its portfolio while takeover interest in the company was increasing.
Action taken
The group agreed to sell Homebase to Australian retailer Wesfarmers for £340 million; completion occurred on 27 February 2016.
Aftermath
Home Retail Group no longer owned Homebase when it was acquired by Sainsbury's later in 2016.
Sale consideration. £340 million (Announced and completed in 2016)
2016
Acceptance of Sainsbury's takeover offerM&ABackground
Sainsbury's made successive proposals for Home Retail Group, while Steinhoff International submitted a competing proposal.
Action taken
Home Retail Group agreed on 1 April 2016 to a formal Sainsbury's offer valued at £1.4 billion. The transaction completed on 2 September 2016.
Aftermath
Home Retail Group ceased to be an independent listed company and its businesses were brought into Sainsbury's group structure.
Takeover offer value. £1.4 billion (2016 takeover)
- Steinhoff International — Steinhoff submitted a rival £1.4 billion proposal on 19 February 2016 but withdrew it on 18 March 2016.
2013
Exit from Home Store + More investmentStrategyBackground
Home Retail Group had held a 33% shareholding in Ogalas Limited, which operated Home Store + More in the Republic of Ireland.
Action taken
The group sold its shareholding on 8 March 2013.
Aftermath
The disposal reduced the group's exposure to the Irish home-retail investment.
Sources1 sources
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