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Homebase EDLP strategy extends to Kitchens

Homebase EDLP Newsletter

In a move that can only be described as a 180 degree change in strategy, Homebase have now extended their 'Every day low prices' to their Kitchen and Bathroom categories.

Their latest email newsletter, issued on Sunday 24th April, for the first time claimed 'No sales, no gimmicks, just every day low prices' on their range of 50 kitchens.

This turnaround has had a noticeable impact on the results being shown on the Kitchen Compare website. Kitchen Compare tracks every day the prices of over 10,000 kitchen components, from six retailers, 32 different styles and more than 130 different individual kitchens. 

The comparisons and the prices shown on Kitchen-compare.com are based on three model kitchens: a 'Galley', an 'L-shape' and a 'U-shape' design. The model kitchens include cabinets with soft close hinges, a 38mm laminate worktop, cabinet handles, decorative end panels, pelmets, plinths and cornice. To see more information on the Kitchen Compare model kitchens, click here.

The prices shown provide a good indication of the retail prices that a consumer will pay today for that style of kitchen, so even if you change the number of cabinets or add some additional features the best price option is likely to remain the same.

For over two years, the lowest price kitchen summary has been dominated by B&Q, with the 'Wickes Ready to Fit' range regularly taking the lowest price slot on the economy ranges when on promotion.

To see the results today on www.kitchen-compare.com click here.

For many years, Homebase have been advocates of a high-low promotional strategy, designed to pressurise consumers into buying a kitchen on the back of short term sales, offering apparently very high discounts. 

As consumers become ever more cynical of this kind of promotional activity and less trusting of retail brands, the Homebase change means three of the six largest kitchen retailers in the UK - IKEA, B&Q and now Homebase all offer an every day low price claim. John Lewis although a small player in the kitchen market, also chose to not offer large discounts.

From a consumer perspective, the change should be welcomed, as it means there's no pressure for consumers to purchase from some retailers due to the rapidly approaching end date of the latest promotion, a trick often used by kitchen consultants to close the sale.

We think this is great news for consumers, for the industry and we just hope that Wickes, Magnet and Wren will also take note and deliver true transparency.

If you'd like to contribute to this discussion, please email me at Steve@irg.co.uk and we'll happily publish your response.

Source: Steve Collinge - MD Insight Retail Group Ltd.

For information on the Insight DIY, Kitchen Compare or Bathroom Compare retail price and range monitoring services, click here.

To advertise on the Insight DIY website and download our media pack, click here.

To sign-up for our weekly newsletter here.

 

28 April 2016

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