Dunelm says it is looking forward to the opportunities for growth from its new furniture fulfilment hub in Daventry, which became fully operational during its third quarter and is now ramping up capacity.
It said it was excited about the opportunities that the new site will unlock for its customer offer, enabling it to accelerate growth and gain further market share in the furniture category.
Dunelm this week reported total sales of £399m in the third quarter, up 69% and significantly higher than the same period in FY21 when its store estate was closed to customers and only click and collect and home delivery services were available.
The company says it will continue to work closely with its suppliers to take actions to mitigate significant raw materials and freight cost increases. However, it said that the outlook remains dynamic, and as a result the company will continue to monitor gross margins closely.
Dunelm has been building a higher level of inventories to mitigate against ongoing supply chain disruption and to ensure better availability for customers. This has meant the second half of the financial year includes some additional stockholding costs. The company says it expects inventory levels to remain broadly similar through to year-end.
Nick Wilkinson, chief executive officer at Dunelm, said: “”It has been another good quarter for Dunelm with sustained growth across all of our homewares categories, particularly as customers ready their homes and gardens for the summer.
“Performance has been strong across all channels and our new facilities for e-commerce and furniture fulfilment are now fully operational, which will enhance our multi-channel proposition, whilst providing the capacity for further growth.”
