Iconic Habitat poised for Yorkshire comeback

Habitat said Yorkshire has a high Habitat customer base, based on its previous experience in the county.

Sainsbury’s is looking at the possibility of bringing back the iconic Habitat homewares brand to Yorkshire after it left the region with the closure of its last store in Leeds in August.

The supermarket chain, which acquired Habitat as part of its £1.4bn acquisition of Argos in September, is to trial Habitat concessions within its stores and if these go well it could launch more Habitat mini stores around the rest of the country with parts of Yorkshire a natural fit with its ABC1 demographic.

A spokesman for Habitat said Yorkshire has a high Habitat customer base, based on its previous experience in the county. It closed its original city centre York Habitat store in 2011.

John Rogers, CEO of Sainsbury’s Argos, described Habitat as “a hidden gem in the Argos acquisition”.

“We didn’t talk about Habitat at the time of the acquisition of Argos. Habitat is a great business and a great opportunity for us.” he said.

Sainsbury’s is introducing Habitat concessions into five stores and will open 30 Argos concessions before Christmas as it launches a new store concept that emulates a department store rather than a traditional supermarket.

There are also plans to add sushi bars and Starbucks chains to turn the everyday shopping experience into a more enjoyable experience.

Mr Rogers said it was too soon to say how many Habitat concessions will open as it will see how the five trial stores go first.

“40 per cent of people shop at both Sainsbury’s and Argos. A lot of our customers haven’t shopped in an Argos. Habitat is a slightly higher demographic, a sightly more upmarket offer,” he said.

Habitat’s managing director Clare Askem said of the five store trial: “We are expecting a very good response. Our customer base is 75 per cent women, ABC1, 25 to 45 year olds - similar to Sainsbury’s.”

Habitat was founded in 1964 by Sir Terence Conran and merged with other retailers in the 1980s to create Storehouse PLC.

In 2009 Habitat was bought by restructuring specialist Hilco and in 2011 all but three of the Habitat stores were put into administration. The indebted furniture chain, the brand and the three remaining London stores were sold to Home Retail Group, the former owner of Argos, in 2011.

During a store tour to the first Habitat concession to open in south London, Mr Rogers said the interiors brand is looking to create a network of regional stores to help support its multi-channel growth strategy. The trial is designed to boost brand awareness with new audiences.

As well as its plans for Habitat, Sainsbury’s said it will accelerate the roll-out of Argos stores within its supermarkets, with Sainsbury’s CEO Mike Coupe saying that every outlet in the country will have either a concession or a click and collect point.

Mr Coupe said: “Over time, we envisage that there won’t be a single Sainsbury’s shop, with the exception of some very small convenience shops, where you won’t either be able to see an Argos concession or be able to click and collect and pick up your item.”

Sainsbury’s operates over 600 supermarkets and around 773 convenience stores. The grocer plans to open concessions and relocate existing Argos stores within its store network as part of the tie-up.

The first relocation of an Argos store into a Sainsbury’s took place last month in Oldham.

Mr Rogers said that, overall, there will be a net increase of over 1,000 retail jobs as a result of the combination.

Analysts believe Sainsbury’s takeover of Argos will deliver cost savings and give the UK’s second biggest supermarket greater firepower to take on the likes of Amazon.

Sir Terence Conran started Habitat in 1964 with the ambition of introducing a "new, European way to shop for contemporary homeware".

In 1972 the firm commissioned a collection of original prints from four of Britain's most important contemporary artists including David Hockney and Peter Blake.

In 1973 it caused outrage when its catalogue featured a scantily clad couple lounging in bed with nothing but a duvet to cover them.

In 1981 the group underwent huge expansion both in the UK and internationally with the opening of 53 stores.

In 1994, it celebrated its 30th birthday with a major exhibition at the Victoria & Albert Museum entitled "Selling Lifestyle, 30 Years of Habitat".

In 2011 all but three of the stores were put into administration after Habitat lost its identity in a crowded high street of mass-produced furniture.