Wesfarmers gambles on Homebase

PERTH, Australia — Wesfarmers faces challenges in rebranding its recently acquired Homebase stores in the UK under the Bunnings banner, the West Australian reports. Although a household name on its home turf, the brand enjoys virtually no recognition in the UK, where the parent company is pouring billions of dollars into rebranding. Wesfarmers will also lack the benefit of local management as it dismissed Homebase’s entire executive board in the days following the acquisition of its 265 UK stores. Instead, it will import Australian managers, who may not be as sensitive to issues unique to British homeowners like rising damp conditions.