Dunelm has reported growth of 3% to £435mn, with positive digital sales and in-store volumes despite both the homewares and furniture markets remaining challenging.
The retailer explained, in its trading update for the 13-week period ending 30 March 2024, that conditions have continued to be volatile – with March in particular seeing softer levels of demand. However, the statement stressed “against this backdrop, our offer continues to resonate with customers and our volume-driven sales performance is underpinned by growth across both store and digital channels”.
Digital sales now account for 37%, an increase of 1ppt. Dunelm said this growth reflects the ongoing improvements it is making to its online customer proposition, such as improving the speed of the website. The homeware retailer also now offers further flexibility on customer delivery options and multi-channel giftcards.
Dunelm assured customers that it has been largely unaffected by the on-going Red Sea disruption, with product availability remaining strong thanks to its supplier model.
Nick Wilkinson, chief executive officer of Dunelm, commented: “We have delivered a resilient performance in Q3, with continued volume-based sales growth through a period of more challenging and volatile market conditions. Whilst discretionary spend remains under pressure, our relevant and attractive product offer continues to resonate with customers as they shop across our broad ranges to find quality and value for all areas of the home.
“This performance reflects our deep-rooted understanding of our customers and the effectiveness of a total retail system which continues to drive growth across store and digital channels, bringing further market share gains. At the same time, our operational grip continues to mitigate ongoing cost headwinds and has supported a strong gross margin performance.
“Looking ahead, we are excited about strengthening our customer offer, and the breadth of growth opportunities this presents. Consumer behaviour continues to be difficult to predict, however we remain confident in our ability to navigate current conditions whilst delivering further sustainable growth and market share gains.”
Learn how value for money and the customer experience are strategic priorities for Dunelm in an exclusive company profile in the RetailX UK Top500 2024 report.
Dunelm is just one of eight profiles in this report, with Amazon, Ikea, Next, Asda, Boden, Richer Sounds & Very also discussed. The tenth edition of the UK Top500 also looks at the balance of retailing over the last decade.
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