Dwell secures funding for nationwide store expansion plan
Dwell, the contemporary furniture and home accessories retailer, is on course to make its bullish expansion plan a reality after securing a £5 million equity investment from independent private equity house, Key Capital Partners.
The Company now plans to launch 33 new high street outlets over the next four years – taking its total number of UK stores to 52 by 2014.
Originally founded as a mail-order furniture business in 2003 by entrepreneur Aamir Ahmad, the Company has grown from a single store in Balham, London, into one of the UK’s most fashionable multi-channel furniture retailers.
Dwell currently has 19 stores, including its recently opened flagship location on Tottenham Court Road, London, and concessions in leading department stores, Selfridges and House of Fraser.
The Company records more than one quarter of its sales through its website, having introduced ‘click and collect’ functionality six years ago. Customers are able to order from pre-purchased stock, which ensures that delivery time is never more than three weeks.
Total sales from Dwell’s high street, online and catalogue channels totalled over £25 million in the year to 31 January 2010. During the year, the Company made a significant investment in its senior management team in order to drive its four-year expansion strategy, boost operational efficiencies and enhance profitability.
Aamir Ahmad, founder and managing director of Dwell, said: “This capital injection from KCP represents the next milestone in Dwell’s development, having strengthened the management team last year in anticipation of both this investment and our aggressive four-year growth strategy.
“While consumer spending has been negatively impacted by the downturn, our market has remained reasonably robust, standing at £17 billion in 2009 and forecasted to grow to £18.8 billion in 2015. Having identified our niche as high quality, affordable furniture and home accessories, we have enjoyed consistent year-on-year sales growth and, in 2010 to date, have managed to substantially enhance profitability. True to our vision for the business, we remain committed to delivering the highest standard of service during every stage of our customer’s journey.”
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