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Dunelm sales up 13.4%

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Homewares retailer Dunelm recorded sales growth of 13.4 per cent in its half-yearly trading statement, issued today.

In a successful half year for the retailer, like-for-like (LFL) sales were up 2.2 per cent in the 26 weeks to December 29th 2012.

Such success comes despite the difficult trading environment for homewares retailers, with a flat housing market and low consumer confidence meaning that shoppers are unwilling to spend on big ticket items.

Although consumer confidence saw an eight point rise in November 2012, it then plummeted back seven points in December, according to the GfK Consumer Confidence Index.

But Dunelm bucked the trend, recording stronger LFL sales growth for the half year and the second quarter than was seen in the homewares market as a whole, as outlined within the BRC home textiles index.

Dunelm has opened 10 superstores in the last six months, bringing its total number of stores to 123 across the UK, with six more already in the pipeline.

The retailer’s multichannel business has also seen growth and now accounts for around four per cent of revenues.

Commenting on the results, Dunelm CEO Nick Wharton, said: “Dunelm has delivered another strong trading performance in the last half year, continuing to gain market share on a like for like basis, while strengthening its customer proposition and adding 10 new superstores.”

Adding that profit before tax for the half year was estimated to be in the range of £59-60 million, he commented: “As we annualise our exceptionally strong performance in the final quarter of the last financial year, we anticipate that sales growth in like-for-like stores will become much harder to achieve in the remainder of the current financial year.

“Nevertheless, with a significant new store growth opportunity and an exciting multichannel agenda in place, the Board remains confident in the longer term growth prospects for the business.”

Published on Tuesday 08 January by Editorial Assistant

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