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Sales grow online and in-store at Dunelm

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Dunelm sales grew strongly across its sales channels in its latest full-year — with online sales up by more than a third. The retailer, ranked Top50 in IRUK Top500 research, says it sees “significant opportunity” both online and in-store. 

Full-year sales reached £1.1bn in the year to June 29, compared to the previous 12 months, the homewares retailer said in a trading update this week. Fourth-quarter sales alone came in at £264.1m (+11.6%) in the 13 weeks to June 29. 

Looking at the Dunelm brand alone – and disregarding its now shuttered Worldstores business – fourth-quarter sales were up by 16.6% on last time, and full-year sales were 11.5% ahead. 

Sales at Dunelm’s stores alone came in at £205.5m (+12.1%) in the fourth quarter, and at £883.8m (+7.7%) in the full-year. Online sales reached £39m (+37%) in the fourth quarter, and £140.2m (+35.1%) in the full-year.

Dunelm chief executive Nick Wilkinson said that both new and existing customers were responding positively to its evolving offer – showing that its purpose of helping ”everyone create a home they love” was resonating.

He said: “We continue to invest in the business, particularly in strengthening our digital capabilities and reaching more customers through our brand marketing initiatives. 

“Looking forward, as the UK’s leading homewares specialist, we see significant opportunity for continued growth both from our stores and online, whilst maintaining our improved operational discipline. In the short-term, we remain cautious about the uncertain political climate and the impact it may have on consumer spending, but expect to make further progress in the year ahead and are confident about the group’s longer-term prospects.”

Dunelm is currently moving to the digital platform that it gained with its acquisition of Worldstores and says that transfer will be completed in the coming financial year. It said it would proceed “carefully through the beta phases in order not to disrupt the strong growth on the existing website.” It has also continued to invest in raising brand awareness, both through sponsorship of This Morning, and involvement in the Back to Mine programme on ITV.  

The retailer opened two new stores towards the end of the fourth quarter, taking its estate to 170 superstores and two high street stores, and expects to open two new stores – one a relocation – in the first half of the 2020 financial year.

Dunelm, founded as a market stall business in 1979, currently employs around 10,000 people and sells a range of around 30,000 product lines in its stores – and double that number online.

Image courtesy of Dunelm

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