Six years after initially rescuing Homebase, Hilco Capital has had an expression of interest from The Range over a potential sale. While talks are at an early stage, data from YouGov BrandIndex suggests that, if the acquisition does eventually go through, it may be a well-built match.
Firstly, both are well regarded, and each might benefit from the association: Impression scores for Homebase, which measure general positive or negative sentiment towards a brand, are at 25.2, while scores for The Range sit at 31.7. If the home improvement store becomes a constituent brand of The Range – as Wilko did when it was acquired – its public image might well improve.
Both also enjoy high customer Satisfaction, although The Range’s scores are a little better (31.6) than Homebase’s (26.0). At the very least, this may serve to ensure some continuity of service quality in the event of a takeover.
One area of divergence is Recommend scores: consumers are more likely to be brand advocates for The Range (27.0) than Homebase (18.6). While again, both scores are good, merging the two companies may create opportunities to share knowledge, streamline processes, and drive customer advocacy even higher.
For The Range’s part, Homebase has a much higher Quality score (16.7 vs. 8.3) – indicating that the public perceive it as a more “premium” brand. So in some respects, the potential acquisition might be an attempt by The Range’s ownership to “level up” perceptions of the budget retailer in the eyes of the public.
Beyond a general audience, consumers of each brand generally like the other. Homebase customers are more likely to have a positive opinion of The Range than the general public (35.7 vs. 31.7), and the reverse is also true: The Range’s customers are more keen on Homebase (30.4 vs. 25.2).
This is far from a done deal, and a formal sale process involving other bidders is expected to launch this week. That said, if it does go through, the data suggests it could be to the advantage of both brands.