Liverpool-based discount retailer Home Bargains is planning to launch itself as a national retailer in an ambitious attempt to capitalise on the credit crunch.
The retailer, owned by TJ Morris, sells end-of-line goods at cheap prices. It is planning to increase its chain of over 140 stores to over 500, starting with 30 new stores this year and 40 more next year. It has further growth plans over the next ten years.
“The plan is to grow as a national retailer,” says Tom Morris, the founder and chief executive of the family-run business. Home Bargains has stores in Newcastle, South Wales and Manchester. New stores are not being currently rolled out south of the M25.
The 30-year-old discount retailer sees the credit crunch as an opportunity as recent reports suggest that more shoppers continue to move towards discount chains such as Primark and Lidl.
“We are not a fashion discount retailer but a variety retailer which sells top brands at bottom prices and the economic downturn has given us an opportunity to expand. There is a lot of retail property that we can get access to, something not easy to get to during a boom, ” Morris explains.
Discount supermarket chain Aldi has revealed plans to open one new store every week, also to cash in on the credit crunch. The German chain is reported to be spending £1.5bn on its five-year expansion plan in the UK. It currently has 2.9% share of the UK grocery market.