Dunelm has posted modest sales growth in its third quarter, as a softer consumer backdrop began to weigh on demand towards the end of the period.

Total sales for the British home furnishings retailer rose 2.1 per cent to £472m in the 13 weeks to 28 March, with year-to-date sales up 3.1 per cent to £1.4bn.

The retailer said trading started strongly, supported by its Winter Sale and new Spring ranges, but momentum slowed in March amid broader market softness.

“We saw further sales growth in Q3, against an uncertain backdrop for both customers and businesses,” said CEO Clo Moriarty.

“Although the external environment is not helpful in the short term, we continue to focus on the areas within our control – strengthening our proposition while operating efficiently and effectively.

Alongside this, we are making good progress building our long-term growth plans with some exciting developments beginning to emerge, including a much stronger store opening pipeline and some encouraging early results from our recently launched app.”

The group highlighted early progress from its newly launched mobile app, which has surpassed 300,000 downloads, as well as plans to expand its store estate, including a new site in Kingston-upon-Thames set to open this summer.

She added: “Our final quarter provides multiple opportunities for Dunelm to stay front of mind for customers, including our popular Summer Sale. We remain confident that our comprehensive offer will continue to resonate with homelovers.”

Looking ahead, Dunelm said it continues to expect full-year profit before tax to come in at the lower end of market expectations, citing ongoing uncertainty and pressure on consumer confidence.

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