Dunelm says 40% (+3pp on the previous year) of its sales were digital in its latest full year, following investment in its website and multichannel services through the year.
The update comes as the homewares and furniture retailer reports that total sales grew to £1.77bn in the year to June 28 2025 (+3.8% on the previous year). It now expects pre-tax profits to be in line with analyst expectations of about £210mn, within a range of £207mn to £215mn.
Dunelm says that while there has not yet been a sustained recovery in consumer confidence, its customers respond to its relevant product range and fast and convenient sales channels.
“Amidst muted consumer confidence, we are not standing still waiting for a recovery,” said Dunelm chief executive Nick Wilkinson. “We are instead focused on delivering relevance to our customers, to help build greater trust in the quality, value and breadth of our offer, harnessing our unique strengths as a multi-category specialist. As we progress our ambitions to gain further market share, we remain confident in our ability to unlock our full potential as the home of homes.”
The full-year lift comes after a fourth quarter in which sales grew to £415mn (+4%) buoyed by a strong summer sale and outdoor furniture sales – reflecting warmer weather. Some 42% of fourth quarter sales were digital.
Strategic and digital update
Dunelm said that it opened four new stores in the final quarter of the year, while also continuing to invest in digital. It says “strong digital performance” in the last quarter of the year reflected the effect of improvements made throughout the year – including the introduction of AI-powered search, recommendation and browsing that is leading to “increasingly personalised experiences”. At the same time, the expansion of its click and collect service delivered a “more convenient shopping experience”.
The retailer also acquired the Designers Guild brand and archive during the fourth quarter.
Leicester-based Dunelm was founded in 1979, starting as a curtains stall on the city market. Today the multichannel business has 12k staff, selling online and through 202 stores. It is ranked Leading in the RetailX UK500 2025.
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