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Multichannel a priority at Dunelm as online sales grow fast

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More of Dunelm's sales are now multichannel
More of Dunelm's sales are now multichannel

Multichannel a priority at Dunelm as online sales grow fast

Dunelm is continuing to make multichannel a priority after a half-year in which customers bought more from it online while also buying in-store – and using a combination of the two channels.


The homewares retailer said the emphasis was on the Dunelm customer offer, after its move to close the Worldstores and Kiddicare websites earlier in the year. Development of multichannel services remains a priority while Dunelm expects to open only one store during the remainder of the financial year.


Dunelm, a Leading retailer in IRUK Top500 research, saw sales grow fast online (+37.9%, to £36.1m) and in-store (+5.7% to £246.4m) in the 13 weeks to December 29 on a like-for-like basis that strips out the effect of store and business openings and closure, in this case including the recent closure of the Worldstores and Kiddicare websites. Multichannel sales – online plus those sales made via its reserve and collect service and in-store tablet selling – accounted for 16.5% of revenue - up from 12.4% a year ago. Overall like-for-like (LFL) sales of £282.5m were up by 9% over the quarter, with total Dunelm sales up by 9.6% at £304m, while total group sales, including those from the discontinued businesses, were in positive territory at 2% to £303.6m, the retailer said in today’s second quarter trading update.

The second quarter figures reflected the longer-term half-year trend, with LFL store sales up by 3.8% to £444.2m in the six months to December 29, and LFL online sales by 35.8% to £62.5m. Overall LFL sales were up by 6.9% at £506.8m, with total Dunelm sales of £548.2m up by 8.7% and total group sales by 1.2% at £551.8m.


Dunelm said that it now expected to launch its new website to customer in the fourth quarter of its financial year. The launch, which comes slightly later than previously expected, will enable customers to use click and collect for the first time and, it says, will give it a more agile approach to multichannel selling.


“The positive like-for-like revenue growth both in stores and online, highlights the strength of our customer offer,” said Dunelm chief executive Nick Wilkinson. “Our multichannel proposition is improving all the time and we are looking forward to introducing our new web platform in the summer, using more flexible technology which will allow us to better serve our customers in a changing retail landscape.”


Dunelm said it remained “cautious” for the second half of the year, as a result of uncertainty n the economy, but said that in medium-term “we see significant opportunity to grow the business by focusing on our customers and seizing opportunities in a digital world.”


Dunelm trades from 169 superstores and online at dunelm.com.


Image courtesy of Dunelm


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