Dunelm boosted by continued sales growth
Dunelm has posted strong first half sales growth with an increase of 4.5% to £872 million driven by volume.
Sales in the homeware retailer’s second quarter edged up 1% despite a challenging market.
Dunelm said its customers were attracted to the choice and value it offers. It was particularly pleased with sales in its cook and dine category where there was a strong sell-through of Christmas products.
As temperatures dropped, “cosy and warm” products such as electric blankets, microwaveable mono slippers and oversized hoodies increased in popularity.
During the quarter, the retailer continued with plans to improve the customer proposition by expanding its ranges. It also opened three new stores and continued to optimise dunelm.com with improvements to both site speed and the customer experience.
Nick Wilkinson, Dunelm chief executive, said: “The breadth of our range and outstanding value of our proposition continues to be well received by customers, resulting in a strong sales performance for the first half despite a tough market backdrop.
“Consumers remain under pressure and are actively seeking true value at all price points. Our customer offer and positioning as the ‘Home of Homes’ resonates particularly well in this environment, and we are confident we have continued to gain market share.
“At the same time, our strong operational grip continues to help us navigate the difficult environment and manage our margins.”
Dunelm anticipates that its pre-tax profit for its full year will be in line with expectations despite volatile market conditions.
Wilkinson added: “We have continued to execute at pace on our strategic plans, opening four new stores over the first half of the year, whilst continuing to expand our ranges and improve our digital offer.
“Our new Spring collections look fantastic in store and are being really well received by customers as we reach the end of our winter sale, leaving us well placed to make further progress in the months ahead.”
