Dunelm defies high street decline with Christmas sales surge

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Dunelm defies high street decline with Christmas sales surge
Dunelm CEO Nick Wilkinson said he was "really pleased" with its performance over the first half of the financial year.
// Dunelm like-for-like sales jumps 5% to £313m in the 3 months to December 28
// It transitioned onto a new digital site which hosted more customers during its pre-Christmas trading peak
// Dunelm now expects annual profits and sales to increase for the full year

Dunelm has defined the downturn plaguing the UK retail industry by posting a surge in Christmas sales in its latest trading update.

The furniture and homewares retailer said like-for-like sales jumped by five per cent to £313 million in the three months to December 28 as it was buoyed by rapid online growth.

As a result, Dunelm held firm on performance forecasts and said it expects annual profits and sales to increase for the full year.


READ MORE: Dunelm posts upbeat forecast after successful online launch


Chief executive Nick Wilkinson said the retailer was “really pleased” with its performance over the first half of the financial year.

First half sales jumped 5.6 per cent to £568.6 million despite a slightly slowdown in like-for-like sales in the second quarter.

“The second quarter was particularly strong in terms of sales and margin growth, on both one-year and two-year bases,” Wilkinson said.

“Our ambitious growth plans are centred on extending and enhancing our customer proposition, helping more customers than ever create a home that they love.

“We are excited by the significant opportunities ahead of us.”

Sales in Dunelm’s stores grew 1.2 per cent on a like-for-like basis to £265.3 million in the festive quarter, it said.

The retailer’s growth was particularly driven by soaring online sales, with revenue from Dunelm.com rising 32.1 per cent to £47.7 million during the quarter.

During that same quarter, Dunelm transitioned onto a new digital site which it said was able to host more customers during its pre-Christmas trading peak than it was able to on its previous system.

It added that it plans to open three new superstores during the next six months.

with PA Wires

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