HomeBase Launches Phase Four of Expansion of New House2Home Retail Concept
Seven HomeBase Stores in Phoenix, and Chico, Calif., Markets Begin Conversion Process
One to Close
IRVINE, Calif.--(BUSINESS WIRE)--Feb. 7, 2001--As part of its shift in corporate focus to transition into the home decorating market, HomeBase Inc. (NYSE:HBI - news) Wednesday announced it has begun phase four of its chain-wide store conversion program, continuing its broad expansion of the company's new House2Home(TM) retail concept.
Phase four of HomeBase's chain-wide store conversion program involves eight HomeBase stores in the Phoenix, and Chico, Calif., markets, including stores in Phoenix, Indian School, Glendale, Tempe, Mesa, and Scottsdale, Ariz., and Chico and Redding, Calif. While the Chico and Scottsdale stores closed Monday, Feb. 5 for inventory, the remaining stores will close briefly today and all stores will reopen on Feb. 8 to begin liquidation sales for approximately 11 weeks.
Following the liquidation process, the Scottsdale store will close permanently, while the seven other HomeBase stores will temporarily close for construction and re-merchandising to reopen as House2Home stores in late June or early July.
On Dec. 5, 2000, HomeBase announced its decision to reposition the company by exiting the home improvement sector and converting approximately 60 additional HomeBase stores to the House2Home format. The company's decision was based, in large part, on the successful results of its five existing House2Home test stores, opened in September of last year -- all of which were former HomeBase stores.
A portion of employees at these HomeBase stores may transfer to the House2Home stores through a new application process. The typical House2Home store will staff, on average, 160 people, which is 45% more than the 110 employees at a typical HomeBase store. Employees who do not take positions at House2Home stores will be offered severance packages upon agreeing to stay through the liquidation period of their store.
Phase four is part of an eight-phase chain-wide conversion program, which involves ultimately converting approximately 60 HomeBase stores and closing more than 20 stores over a 12-month period. The first three phases of the rollout are underway and have involved 24 store conversions and 15 closures in three markets.
A new phase will begin every three weeks and follow the same approximate 20-week timeframe, with 11 weeks of liquidation sales and nine weeks of construction.
``This is a tremendously exciting time for our company as we commit to change our future course and embark upon a new beginning,'' said Herb Zarkin, chairman, president and chief executive officer, HomeBase.
``We have a unique opportunity to take a leadership position in many high-growth categories within the home furnishings market that we have identified as fragmented businesses with no single dominant competitor.
``More importantly, we believe House2Home offers consumers a shopping experience unlike any other, with important points of differentiation, including a unique mix of product categories under one roof, a product selection that is as deep as it is broad, an emphasis on value with a wide range of price points, special conveniences and added services, as well as excellent customer service.''
Spanning more than 100,000 square feet, House2Home stores offer an expansive selection of specialty home decor products at value prices. With everything to beautify, accessorize and personalize the inside and outside of a home, House2Home incorporates a unique mix of four specialty businesses under one roof:
Outdoor living: including patio furniture, Bar-B-Q, nursery and
garden, outdoor lighting, fountains and other decor;
Indoor living: offering a wide selection of flooring,
carpeting, lighting, wall and window coverings and selected
furniture;
Home decor and accessories: with everything from tabletop,
kitchen, storage, bedding and bath to candles, silk flowers,
picture frames and a variety of other decorative items;
Seasonal and party goods: with a vast array of specialty items
for all seasons and almost every occasion, with customized balloon
bouquets and party favors, as well as holiday merchandise.
HomeBase is a retail company with 89 stores in 10 western states. The company currently has 84 HomeBase home improvement stores, which average more than 100,000 interior square feet, with an adjoining outdoor nursery. The company also operates five House2Home home decorating superstores in California and Nevada, which also average more than 100,000 interior square feet, with an adjoining outdoor nursery and garden center.
The company is in the process of converting the vast majority of its HomeBase stores into House2Home stores over the coming months. Representing four specialty stores under one roof, House2Home is an exciting one-stop shopping destination for everything that makes a house a home.
Matters discussed in this news release include forward-looking statements that involve risks and uncertainties that could cause results to differ materially from those expressed. Such risks and uncertainties include, but are not limited to, a change in the ongoing positive trends at House2Home stores; House2Home becoming a substantial growth opportunity for the company, with the potential to increase returns and stockholder value; the accuracy of all assumptions in any press release upon which the company's earnings estimates are based; the company's ability to successfully complete a conversion program within a 12-month period; the competitive marketplace, economic conditions in the company's markets and the factors set forth in the company's annual report on Form 10-K for the fiscal year ended Jan. 29, 2000 under the heading ``Risk Factors'' and in the company's other filings with the Securities and Exchange Commission. The company undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof.
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Contact:
HomeBase Inc., Irvine
Michele Feller, 949/442-5448
homebase.com
or
Ketchum
Lauren Bruksch, 310/444-1345 |
