Tuesday, March 26, 2019

Dunelm posts strong profits as store expansion continues


Like-for-like first half profits at homewares retailer Dunelm have risen 4.5 per cent to £62m despite LFL‘s falling 0.9 per cent.

The retailer, which opened six new superstores in H2, has committed to opening ten further sites (including two relocations.)

Nick Wharton, Chief Executive said he was cautious about consumer spending trends overall but praised strong trading results over the second half of the year.

Dunelm has invested £7m into its new multi-channel platform which will increase its personalisation options with customers and opened its web-only fulfilment centre in Birmingham in October which has boosted its delivery reach.

Greg Bromley, Consultant at Conlumino, commented: “Dunelm now looks to be back on track; this is largely thanks to its coherent strategy, with its specialist proposition sitting alongside an improved multichannel offer, and an expanding store portfolio.”

“The main challenge for Dunelm will be to balance a national footprint with enhanced operational efficiency. The retailer can be proud to call itself one of the success stories in the face of the economic downturn although, with significant investment imminent, it will have to work hard to ensure this does not impact top-line profits.

“At the same time, it is likely to face increased competition both in terms of the battle for spend from John Lewis and IKEA, and in the search for new sites, from the expanding discounters.”