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Dunelm reports 40% rise in home delivery sales

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Dunelm today reported a 40% rise in home delivery sales, reflecting a strategy to increase its sales through a multichannel approach.

In February the homewares retailer said in its half-year results that it aimed to grow its sales by 50% over the medium-term, with half of that growth coming from stores and half from its online home delivery channel.

Today, in a third-quarter trading update, the company said its total revenue grew by 10.7% in the 13 weeks to March 28. Home delivery sales grew by 40% to £14.1m, while like-for-like store sales, a measure that strips out the effect of store openings and closures grew by 2.9% to £176.2m. Overall revenues, including a £26m contribution from new stores, rose by 10.7% to £216.2m.

In the 39 weeks to March 28, the year so far, online sales of £36.6m were 59.9% up on last year, with overall sales up by 12.9% at £622.6m. The company said that it expected to launch its new web platform before the end of its current financial year.

Will Adderley, chief executive, said: “We have recorded solid sales growth over the last quarter, and we believe that we have continued to take market share on a like-for-like basis.

“We have a strong Easter event now in progress, a powerful summer sale to follow, and the launch of our new web platform before the end of the financial year, all of which leave us well placed to drive further sales growth through our final quarter. However, the full year outcome against our ambitious internal targets will ultimately depend on the traditionally volatile summer months’ trading.

“Looking into the next financial year and beyond, we remain very excited about the prospects for the business and about the clear growth ambitions that we set out in February.”

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