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Dunelm grows profit to £116m

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Homeware chain Dunelm has posted a full-year profit of £116m as it successfully capitalised on the UK housing boom.

The group, which sell blinds, bedding, curtains and kitchenware, increased profits by 7.4 per cent as its aggressive store expansion and ongoing direct sourcing programme helped it fulfil its goals.

The group, which operates 136 UK stores, spent £5m on advertising for the year to 28th June 2014, including £3m on a national TV campaign.

Nick Wharton, chief executive, commented: “We have continued our strategy of increasing scale through new store openings and multi-channel growth whilst investing in our customer proposition for the future.

“During the period we have increased the rate of that investment, ensuring we continue to provide our customers with market leading choice and expertise, helping us to maintain our differentiation from competitors over the long term.”

It said that multi-channel revenues represented 7 per cent of total sales in the final quarter of the year.

Matthew Piner, research director at Conlumino, commented: “Online sales also continue to contribute to growth, although Dunelm remains behind the market in this area.

“Next up will be investments in improving the website but, with online sales made at a lower level of profitability than the traditional store channel, Dunelm will be wary of pushing the platform too aggressively.”

Dunelm was founded in 1979 on a Leicester Market stall by Bill and Jean Adderley.

Published on Tuesday 08 July by Editorial Assistant
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