Dunelm posts third quarter sales growth
Dunelm has seen its third-quarter sales grow by 3% to £435 million despite the “challenging” homewares and furniture markets in which it operates.
The retailer said it benefited from ongoing improvements to its online customer proposition which led its mix of digital sales to increase by 1% to account for 37% of total sales in the 13-week period to 30 March.
Dunelm said its trading conditions have continued to be difficult with March in particular seeing softer levels of demand.
Nick Wilkinson, Dunelm chief executive, said: “We have delivered a resilient performance in Q3, with continued volume-based sales growth through a period of more challenging and volatile market conditions.
“Whilst discretionary spend remains under pressure, our relevant and attractive product offer continues to resonate with customers as they shop across our broad ranges to find quality and value for all areas of the home.”
Giving a strategy update, Dunelm said it is make good progress in building the ‘Home of Homes’ by strengthening its customer offer, extending and digitalising its total retail system and evolving its marketing ecosystem. It has also introduced a new marketing campaign which aims to position Dunelm as the place to go for all of its customers’ home needs.
The retailer said it expects to meet its store openings target for the full year with four new stores opened to date and a further two, including one relocation, to launch by the end of the year.
Despite the trading environment, Dunelm currently expects its full year pre-tax profit to be broadly in line with market expectations.
Wilkinson added: “Looking ahead, we are excited about strengthening our customer offer, and the breadth of growth opportunities this presents. Consumer behaviour continues to be difficult to predict, however we remain confident in our ability to navigate current conditions whilst delivering further sustainable growth and market share gains.”
