Dunelm’s chief executive Nick Wilkinson has announced his intention to step down from the business he guided through Covid, after it recorded another sales rise in the first half and moved towards the opening of its 200th store.
The homeware retailer posted sales growth of 2.4% for the 26 weeks ended 28 December 2024, with total sales increasing to £894m up from £872m for the same period last year.
Alongside the update, Dunelm announced that long-time chief executive Nick Wilkinson would be stepping down from the business after seven years in the role. Wilkinson will remain in the role until a replacement is found.
“It is a real privilege to lead a business I love, and being a part of Dunelm’s growth story is as fulfilling now as it was on day one. However, personally, it feels like I’m approaching the right time to step away from full-time executive life,” Wilkinson said.
“There is a lot of magic in this business, from its market stall heritage, to its unique business model, but the real power is in the quality of my colleagues and it is fantastic to work with such an incredible group of people who support each other so well.
“Whilst this will be the final stage of my Dunelm journey, I’ve never been more confident in the opportunities ahead for this special brand. There remains lots to do, and much to learn, as Dunelm continues to grow and develop. So, for now, it’s business as usual for me.”
Holding its outlook for the full year, Dunelm said that its sales were driven mostly by volume growth, and it increased its gross margin from 52.7% to 52.8% during the period. Online sales also increased, with 39% of total sales made via digital channels compared to 36% last year.
Pre-tax profits at the group were flat, up 0.2% to £123m. The retailer warned that the additional costs unveiled in the Autumn Budget were not anticipated, and it aimed to offset the cost increases by making “operational improvements and targeted longer-term productivity opportunities” which would allow it to deliver “broadly stable” profit before tax margins going forward.
In a bid to cut labour costs, Dunelm said that a successful self-checkout trial in its larger stores would be rolled out to 100 stores by the end of the next financial year, with its investment set to pay back in less than three years in a solution that “appeals to many customers”.
Dunelm chief executive Nick Wilkinson said: “Our performance over the first half reflects the growing attraction of the Dunelm offer for a wide range of customers, and the quality and resilience of our business model. Amidst a challenging backdrop for retail, those attributes have helped us deliver increased sales, a strong gross margin, and both customer and market share growth.
“We have also pressed ahead with our strategy. Whether our customers prefer maximalist prints or neutral plains, the elevation of our product is apparent through the diverse range of styles on offer for all tastes, with quality once again endorsed through the awarding of a Royal Warrant to our Dorma brand.
“Our thriving total retail system is connecting that product with more customers, and we saw further growth in our increasingly personalised digital channels, as well as some exciting firsts for our store portfolio – we arrived in inner London at Westfield, acquired 13 stores in Ireland, and we will open our 200th store in the second half.
“As ever, while pleased with our results, we are eager to move faster and with greater purpose. Customers love Dunelm, but we can grow to become a destination for more customers, across more categories, more of the time. With our dedicated colleagues, who have shown incredible adaptability in a difficult trading environment, this gives us a renewed confidence in unlocking our full potential as the home of homes.”
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