Home Bargains has acquired the smaller and similar-format variety discount chain Quality Save.
Home Bargains – the trading name of TJ Morris Ltd – bought Quality Save on 26 January. As a result, Quality Save’s 21 stores in the north of England will now become part of Home Bargains’ estate, which stood at about 550 branches ahead of the acquisition.
Home Bargains operations director Paul Rowland is now also a director of Quality Save, while Quality Save family directors Paul, Diane and Richard Rudkin have stepped down.
Quality Save is already supplied by Home Bargains, meaning it sells the same products.
“We are pleased to confirm that TJ Morris acquired Quality Save with effect from 26 January 2023,” said a Home Bargains spokesman.
“Our existing close working relationship makes Quality Save a great fit for the TJ Morris Group and we’re excited that we are now able to bring these stores into Home Bargains, increasing our store numbers and simplifying how we work.”
The spokesman added: “Quality Save becomes a wholly owned subsidiary of TJM Limited, which trades as Home Bargains.”
Quality Save was founded by Bob Rudkin in 1974, making it two years older than Home Bargains. It grew store by store in the Manchester area and in the mid-1990s struck a deal making Home Bargains its exclusive supplier.
The two retailers also have similar blue-and-red branding, while some Quality Save stores carry Home Bargains’ slogan, boasting ‘top brands – bottom prices’.
Quality Save’s current locations include Widnes, Barnsley and across Greater Manchester, with 47% of its estate in either major town centres or suburban centres, according to analysis by CACI.
“This acquisition, albeit small given the size of their comparative estates, appears to be giving Home Bargains a greater presence in more town centres and suburban centres,” said CACI managing consultant Charlotte King.
Latest full-year accounts filed at Companies House show new store openings helped boost Home Bargains’ revenues by 20% to £3.3bn in the 12 months to 30 June 2021.
The company aims to grow its estate to between 800 and 1,000 stores in the long term.