Dunelm's like-for-likes up 9% as it focuses on core brand
Homewares retailer Dunelm increased its like-for-like revenue by 9% in its second quarter as the company focused more on its core Dunelm brand.
In the 13 weeks to 29 December, in-store like-for-like sales rose by 5.7% year-on-year while online sales climbed by 37.9%.
Total multichannel revenue, which includes like-for-like online revenue, reserve and collect and tablet-based selling in-store, represented 16.5% of revenue, which was a 4.1% increase on the same period in the previous year.
The quarter’s results mean that Dunlem expects its first half pre-tax profit to be around £70 million once an impairment charge of £3.8 million is included.
Having closed its Worldstores and Kiddicare websites, the company is now focused on reaching new customers through its new Home of Homes integrated marketing campaign which is running across TV, radio and social media platforms.
Nick Wilkinson, Dunelm’s chief executive, said: “We are pleased with our overall performance in the first half, and are helping more customers than ever to create a home they love. By focusing back on our core business, under one Dunelm brand, we are improving our trading and financial performance.
“The positive like-for-like revenue growth both in stores and online, highlights the strength of our customer offer. 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.”
The company's new website will enable Dunelm to offer customers a click and collect service.
Dunelm did not open any stores in the quarter but expects to launch a relocated store towards the end of the financial year.
Looking ahead, Wilkinson said: “Despite our strong performance in the year to date, we remain cautious on the outlook for the second half given the ongoing uncertainty in the UK economy. However, in the medium term, we see significant opportunity to grow the business by focusing on our customers and seizing opportunities in a digital world.”
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