Dunelm posts record sales as it focuses on offering value to customers
Homewares retailer Dunelm grew its sales by 5.5% to a record £1.64 billion in the year to 1 July as it focused on offering value to customers.
This included cutting the prices of over 1,000 products as it passed on freight cost savings back to customers.
Despite the sales uplift, Dunelm posted a 7.8% drop in profit to £192.7 million following a tightening of operational controls and the impact of inflation on costs. Profits were also affected by the retailer’s investment in digitalising its end-to-end operations and growing capability to help “seize the opportunity” for sustainable growth.
Nick Wilkinson, chief executive of Dunelm, said: “In a period of extensive economic uncertainty, we have maintained our focus on enhancing our customer proposition, expanding our offer whilst staying fully committed to value and making every pound count.
“This has clearly resonated well with our customers, enabling us to continue growing both sales and market share. As ever, our amazing colleagues have been at the heart of this performance and I thank them all for their knowledge, personality, commitment and enthusiasm.
“As we manage the ongoing challenges, it is crucial that we do not lose sight of our longer-term ambitions. We are committed to raising the bar on value and joy for our customers and continuing to invest where we see good returns, so that we can seize the various opportunities ahead.”
Dunelm launched three new shops in the year, including one relocation, and is now planning to open five to ten new stores in each of the next two years.
Wilkinson said: “We are excited about our future growth opportunity and more confident than ever that our commitment to value and tireless focus on improving the experience for our home-loving customers will leave us well placed to deliver sustainable growth in the future.”
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