The business was founded by Julius Drewe (1856–1931), who went into partnership with John Musker in 1883, selling groceries at a small colonial goods store in Edgware Road in London.

[4] Within this period of rapid change, Home and Colonial formed Allied Suppliers to act as a buyer on behalf of the whole group.

The business purchased the South East-based supermarket chain Cater Brothers from Debenhams in 1979, and converted the stores into its Presto brand.

In Dorothy L. Sayers' novel Busman's Honeymoon (1937), the Home and Colonial network is mentioned as operating in the small Hertfordshire village where the book's plot is set, indicating its wide reach at the time of writing.

A local woman tells Lord Peter Wimsey's servant Bunter that groceries sold by the "Ome & Colonial" are better and cheaper than those provided by the village grocer.