Home Bargains is reporting annual sales of £2.4bn and pre-tax profits of £233m and says it is ‘hungry’ for new stores with a plan to grow employee numbers to 40,000. Tony McDonough reports
Liverpool-based national retail chain Home Bargains has revealed a plan to double the number of its UK stores to 1,000.
In its latest accounts published at Companies House the business, which was started as a single store by Tom Morris in 1976, reported a 15% increase in revenues to £2.4bn for the year to June 30, 3029 and a rise in pre-tex profits from £202m to £233m.
The Morris family still owns the business, which is based at Gillmoss in North Liverpool, with Tom Morris still owning 95% of the shares and his brother Joe the other 5%. According to the accounts of the parent company, TJ Morris, the family received a £10m dividend last year.
Home Bargains currently has 506 UK stores and employs almost 23,000 people. Its ambitious plan, which it will begin to roll out next year, would see that grow to between 800 and 1,000 outlets with employee numbers growing to 40,000. It has advertised for retail landlords to get in touch saying it is “hungry for new stores”.
Such an expansion would see it easily overtake its key rival in the value retail market, B&M, another Liverpool-based business with its headquarters and main distribution depot in Speke. B&M currently operates 600 UK stores. Home Bargains is targeting locations in cities, towns and suburbs with premises ranging in size between 15,000 sq ft and 20,000 sq ft.
In the accounts the company said: “Further additions to retail outlets are planned during the year to June 30, 2020, which should lead to further growth in turnover and profitability.”
Earlier this week Home Bargains confirmed it would open its next Liverpool store in Speke in South Liverpool on Saturday, November 9. It is also believed to be planning to open a new outlet in the former Toys R Us store close to Princes Dock on Liverpool’s waterfront.