Dunelm unveils three-year growth plan as heatwave hits trading
Dunelm has unveiled a new three-year growth plan as it warned that this summer’s hot weather had impacted trading at the beginning of its new financial year.
The homewares retailer said its “Winning Hearts & Homes” plan will aim to accelerate Dunelm’s growth through improved customer loyalty and spend, and a return to sustainable mid-to-high single digit sales growth, supported by increasing like-for-like sales, digital acceleration and store investment.
It will also include the removal of around £100 million of unproductive costs to enable the business to invest in and support higher growth.
Subscribe to TRBClo Moriarty Dunelm chief executive, said: “We have a strong track record, a market-leading position and, importantly, a significant opportunity ahead of us. We believe we can capture that opportunity through a customer-led, self-funded plan that builds on the many strengths that have made us successful for nearly fifty years.
“We want to reach new customers and deepen our connection with existing ones, earning more loyalty and becoming the specialist they turn to for every mission in the home, whether they are refreshing a room, solving a practical problem, or creating a space they love.”
The news comes as Dunelm reported that its sales increased by 3.1% year-on-year to £1.825 billion in the year to 27 June. Pre-tax profit was in line with the prior year at £211 million.
During the period, Dunelm opened two new stores, including a smaller store in Wandsworth and a superstore in Kingston-upon-Thames. It also reopened its Yeovil store following a serious fire.
Giving an update on more recent trading, Dunelm said the extended period of unusually hot weather this summer meant it experienced “significantly softer trading” in the first six weeks of its new financial year, although sales had improved after temperatures cooled.
Looking ahead, Moriarty said: “We delivered a solid performance for the year, growing sales, maintaining profits and generating strong cash returns for shareholders. My sincere thanks go to our loyal customers, our valued suppliers for their ongoing partnership and of course our tremendous colleagues who make all of this happen.
“Over the last year, we have taken a deep and honest look at our business and the opportunities ahead to better serve our customers and drive the group’s performance.
“This work has given us confidence that the opportunity in front of Dunelm is larger than we previously understood, but also that we need to evolve. The strength of our business and balance sheet means we are well placed to invest for the future and accelerate our growth trajectory.”
