Dunelm Reports Strong Sales Growth Despite Challenging Retail Climate

A strong summer sale, along with robust demand for garden furniture, has enabled Dunelm to weather a subdued retail market and report a 4 per cent increase in sales for its fourth quarter. The homewares retailer recorded total sales of £415 million for the 13 weeks to 28 June, up from £399 million in the same period last year.

The sales uplift was attributed to the retailer’s summer sale, which incorporated both full-priced and discounted items. Warmer summer weather also boosted sales of outdoor furniture and decorative accessories, while the company’s furniture division continued to deliver strong performance. Recently implemented AI-powered search and recommendation features on its website have helped the retailer deliver increasingly personalised experiences, which have contributed to the positive results.

Dunelm’s outgoing Chief Executive Nick Wilkinson emphasised that muted consumer confidence has not deterred the retailer’s efforts to maintain relevance with its customers. The company has opened four new stores during the quarter, including a location in White City, London, as well as larger superstores in Manchester and Southend. For the full financial year, the company reported a 3.8 per cent rise in year-on-year sales, reaching £1.8 billion.

Dunelm’s recent acquisitions, including Dublin-based Home Focus at Hickeys and luxury home décor brand Designers Guild, which supplies fabrics under exclusive licence for the royal family, have further strengthened the company’s portfolio. Analysts forecast full-year pre-tax profits of £210 million, and shares in Dunelm have risen by 14 per cent this year, closing at £11.87 on the latest update.

As economic conditions remain uncertain, Wilkinson expressed confidence in Dunelm’s ability to gain further market share. The company’s performance aligns with that of other resilient retailers, including DFS Furniture, which reported a 5.8 per cent rise in annual gross sales driven by increased market share and strong order intake.