Dunelm pledges to ‘make every pound count’ as profits and sales climb

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Dunelm has recorded an uplift in both profits and sales, gaining market share from homewares competitors.

Dunelm Farnborough

The retailer registered profit before tax up 32.4% year on year to £209m in the 53 weeks to July 3.

Sales also jumped 16.2% to £1.5bn for the year, up 41% compared to pre-pandemic levels.

Dunelm said it made market share gains in homewares and furniture, and also grew its active customer base by 8.5% across all demographics.

The retailer expanded its ecommerce fulfilment operations, offering greater scope for growth and better delivery options for customers.

However, the digital share of overall sales dropped to 35% as customers flocked back to physical stores.

Dunelm said sales during the first 10 weeks of its new financial year had been “robust”, despite the cost-of-living pressures facing consumers.

The retailer is focusing on cost control in order to offer the best value for customers while still generating growth.

Chief executive Nick Wilkinson said: “Our colleagues and our committed supplier partners are at the heart of our success. In another year of excellent performance, I am extremely grateful for their skill, commitment and adaptability in the face of new external challenges and during another busy period of progress across the business.

“We feel confident and well prepared to weather the current economic pressures - we emerged from an unprecedented global pandemic as a bigger, better business and we believe we have the tools in place to do that again. That said, the operating and economic environment is extremely challenging.

“In this environment, we have to make every pound count, both for ourselves through our tight operational grip and cost discipline, and for our customers, through our offer of outstanding value at all price points.

“Dunelm, at its heart, offers customers great choice and value. Now is not the time for us to shy away from that, but for us to fully embrace it; whether it’s our Winter Warm collection or our Student Essentials range, we think Dunelm’s unique and market-leading offer is more relevant than ever before.”