Digital channels accounted for 41% of Dunelm’s sales in the first quarter, demonstrating the strength of the homewares retailer’s omnichannel proposition that has enabled it to grow despite the current challenging economic environment.
Dunelm’s sales grew to £433m for the 13 weeks to 26 September, up 1.1% year on year. Digital participation increased by one percentage point to 41% of sales, with the retailer’s definition of digital including home delivery, Click & Collect and orders placed through in-store tablets.
Based on reported sales, digital channels generated around £178m during the quarter.
Performance improved in second half
Performance improved as the quarter progressed. Sales were down around 3% in the first six weeks as the long summer heatwave reduced footfall and weakened demand, but they returned to growth of approximately 4% during the final seven weeks. Store-enabled like-for-like sales declined 0.8% year on year.
Alongside its financial results, Dunelm said that it has continued to invest in initiatives aimed at strengthening its omnichannel capabilities. The retailer is progressing store renewals, opening new locations and rolling out RFID technology to improve product availability and operational efficiency. It has also introduced AI-enabled tools within its contact centre to enhance customer service.
Building momentum through the quarter
Chief executive Clo Moriarty said the retailer had built momentum through the quarter despite the hot weather-related disruption. “We are making good progress with Winning Hearts & Homes, our plan to create a bigger, better and bolder Dunelm,” she said. “We’re taking clear actions to build a stronger customer proposition and create the capabilities needed to support our long-term growth.”
Looking ahead, Dunelm said expectations for FY27 adjusted profit before tax remain unchanged and broadly in line with FY26, while the retailer continues to invest in digital, data and customer experience initiatives designed to support long-term growth.
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