Dunelm gives coronavirus and trading update
Dunelm has said it had taken the decision to close its stores yesterday and offer contactless collection points for click and collect orders instead.
However, last night’s statement by the Prime Minister means that it will now temporarily close all of its customer facing operations in order to comply with the new restrictions and guidelines.
The homewares retailer also said it has taken “significant and decisive” actions to support the most vulnerable and lowest paid staff within its business.
In addition, it has acted to protect its cashflow by reducing capital expenditure and all non-essential operating costs. It is also working with suppliers to manage its stock requirements, liaising with landlords to improve its rent payment schedule, and will use the government’s Job Retention Scheme to help fund staff pay.
Giving an update on recent trading, the company said total like-for-like sales were up 6.5% in the first ten weeks of its third quarter. During the period to 7 March, like-for-like store sales rose by 2.4% while online sale increased by 31.9%.
However, like-for-like sales have dropped by 8.8% in the last two weeks following a reduction in store footfall.
Due to the uncertainty created by the Covid-19 panademic, Dunelm said is unable to give any financial guidance for the current financial year and beyond.
Nick Wilkinson, Dunelm’s chief executive, said: “These are unprecedented times, but Dunelm is a strong business which has been built over 40 years on the foundations of close relationships with our customers, colleagues, suppliers and shareholders. Our business principle to ‘Do the right thing’ is more important than ever in the current situation.
“We have a very strong team in place who are adaptable and committed to ensuring the long-term success of the business. We are navigating the challenges of this situation, acting in the interests of all our stakeholders, and doing the work necessary to ensure that we come through this crisis in a stronger position and with a better business for the future.”
