Dunelm reports 'retail slow-down' in the run-up to the EU referendum

The retailer said total sales grew 1.8% in its fourth quarter to £203m.

Total like-for-like growth, combining stores and home delivery, slipped 0.6% owing to “calendar impacts”, including this year’s early Easter. Adjusting for this, the retailer said its like-for-likes in the 13 weeks to July 2 rose 2.9%.

Its business continued to grow with home delivery sales jumping 16.8% in the quarter.

The retailer said its sales performance reflected “volatile trading through the quarter”, driven by “changeable weather conditions” and a “general retail slow-down prior to the EU referendum”.

said: “I am pleased to report another solid quarter of underlying growth, particularly given the more difficult retail trading environment which we believe has seen the market decline in the quarter.

“The current uncertainty makes the future trajectory of the economy and consumer confidence unclear; however, we are confident that , as market leader, will continue to strengthen its position through its low cost operating model, everyday value, consistent cash generation and strong balance sheet.”

He added: ”We remain focused on delivering key projects across the business and are excited about substantially improving the business for our customers, both in-store and online.”

Speaking to Retail Week prior to the referendum, expressed a preference for the UK remaining in the EU.

The retailer opened two new stores in its fourth quarter, taking the estate to 152 superstores. It is currently committed to a further seven store openings in the next financial year, including one in London. 

Dunelm anticipates full-year profits to be in line with market expectations.