Dunelm ‘excited’ as sales deliver sustained growth

Homewares retailer Dunelm has reported a growth in third quarter sales.

According to its latest trading update for the 13-week period ended 26 March 2022, total sales of £399m in the third quarter were up 69%, significantly higher than the same period in FY21 when its store estate was closed to customers and only Click & Collect and home delivery services were available.

Third quarter sales were 40% higher than Q3 FY20, noting that the final three weeks in that quarter were impacted by the beginning of the Covid pandemic. Excluding those final three weeks, total sales for the first 10 weeks of Q3 FY22 were up 31% compared to the same period in FY20.

Year-to-date total sales were up 37% on a year-on-two-year basis, with continued strong growth in store sales and digital sales being more than double the level of two years ago.

Dunelm said: “Customers responded well to our Winter Sale held in the first few weeks of the quarter, with a very strong sales performance across most categories. We have continued to refresh our product ranges, with our new ‘Summer Living’ products performing particularly well during March, as customers looked to ready their homes and gardens for summer.”

The company added that its new furniture fulfilment hub in Daventry became fully operational during the quarter and it is “pleased with how the site is ramping up its capacity”.

“We are excited about the opportunities that this new site will unlock for our customer offer, enabling us to accelerate our growth and gain further market share in the furniture category.”

Dunelm also opened a new superstore in Leeds, growing its estate to 176 stores, while revealing it plans to open one further new store before the end of the financial year.

Nick Wilkinson, Chief Executive Officer, commented: “It has been another good quarter for Dunelm with sustained growth across all of our homewares categories, particularly as customers ready their homes and gardens for the summer. 

“Performance has been strong across all channels and our new facilities for e-commerce and furniture fulfilment are now fully operational, which will enhance our multi-channel proposition, whilst providing the capacity for further growth.

“Whilst the macro environment remains uncertain, with significant headwinds and increasing pressures on the consumer, our wide product range offers choice for every budget, whether replacing everyday essential items or refreshing a room in your home. The resilience of the Dunelm business model and the ability of our colleagues to adapt quickly to changing circumstances give us confidence in our plans and we remain well placed to continue to grow market share.”

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