Dunelm posts strong half year growth as it benefits from its ‘broad appeal’
Homewares retailer Dunelm has increased its first half sales to £872 million from £835 million in the prior year.
The retailer also grew its profit in the period with a 4.8% uplift to £123 million.
Trading was boosted by 4.2% growth in Dunelm’s number of active customers and increased transaction frequency following a strengthened customer offer. The retailer opened four new stores in the half year to take the total to 183.
Meanwhile, Dunelm continued to grow its digital sales which accounted for 36% of total sales compared to 34% a year ago,
Nick Wilkinson, Dunelm chief executive, said: “In the past six months we have kept our customers front of mind, ensuring our broad offer has value at its core whilst also expanding our ranges, introducing new styles, and improving the experience across our store and digital channels.
“Despite ongoing pressures on consumers, we are encouraged by the wide variety of new customers shopping with Dunelm, and existing shoppers also coming back more frequently.
“Alongside the positive sales performance we have delivered a very strong gross margin, which is testament to our tight operational control and the inherent strength of our business model.”
Dunelm said it was pleased with trading in the second half to date as it continues to invest in increasing its “broad appeal”. Its pre-tax profit expectations for its full year remain unchanged.
Wilkinson added: “As we move towards spring and customers look to freshen up their homes, our specialist proposition continues to resonate strongly and, in a dynamic retail environment, we are relentlessly focused on evolving and investing in our business to ensure we remain relevant to further increase our broad appeal.”
