Dunelm expects to snap up several former Wilko stores as part of its expansion plans, the retailer’s boss has said.
Chief executive Nick Wilkinson told The Times that the homewares retailer could soon hoist its sign above some of the Wilko branches.
Dunelm is set to double its store opening rate to five to ten branches in the next two years.
Wilkinson said: “[Wilko] had 400 shops and we’re talking about five to ten shops a year, so we’re not one of the players to say we’d like to take on a tranche of stores.
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“But I suspect what will happen is that as stores go back to landlords…there will be an opportunity to pick up [some of those shops].”
He said the retailer’s new stores would focus on “urban areas” in southeast England and London, where it does not have a large footprint.
“We will open in areas of denser population…to reduce drive time and make it more convenient for customers. We would love to have more stores in the inner London boroughs,” he added.
His comments come as the retailer posted a 7.8% drop in profit to £192.7m in the year to July 1, despite sales growing 5.5% over the year to £1.64bn.
Dunelm would not be the only retailer to make a move on the vacant stores left behind by Wilko, which collapsed into administration last month.
Lidl boss Ryan McDonnell revealed last week that his property team were in “close contact” with the retailer’s administrator over potentially acquiring some of its former stores.
B&M has inked a deal to buy 52 stores, while Poundland has snapped up 71 shops.
The Range also bought Wilko’s brand, website and intellectual property for £5m.
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6 Comments. Leave new
The Ilford Wilko store would be ideal for Dunelm or one of the other companies looking for a store in a busy area.
Need a store like Dunelm in Coventry Town centre since losing Co op, TJ Hughes, Debenhams, British home stores and now Wilko.
I wonder what is happening to the Leicester and Beaumont Leys sites?
Be nice to see a Dunelm or B&M in Manchester Arndale.
Wish dunelm would come to Aylesbury or maybe primark some thing to bring people back in to the town centre. Because we will only have charity shops or coffee shops/ barbershops not much else.
Be nice to see a Dunelm, Poundstretcher or B and M in Earlestown.