Dunelm gets its house in order online as store sales decline

 
Alys Key
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Dunelm's online business has improved

Declining sales at Dunelm's stores in the 13 weeks to June were somewhat offset by strong online growth.

The figures

Like-for-like sales in stores were down 4.6 per cent in the quarter at £179m.

But comparable sales online jumped 41.8 per cent to £30m.

Total revenue declined by 1.4 per cent on the year to £236.5m.

For the year to the end of June, like-for-like revenue was up 4.2 per cent and total growth stood at 9.9 per cent.

Pre-tax profits are expected to be £102m for the year, down from £109.3m last year.

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Why it's interesting

Like sofa retailer DFS, which warned this morning that the furniture market will remain challenging in the near future, Dunelm has felt the impact of consumers putting off big ticket purchases.

Today's update follows an unexpected profit warning from the FTSE 250 group in May, which sent its shares plummeting.

But the group is now taking action to reduce losses. Its acquisitions Worldstores and Kiddicare are both to be absorbed into the Dunelm brand.

Meanwhile the technology acquired from the Worldstores takeover is set to improve online operations, adding click and collect.

Read more: DFS issues profit warning

What Dunelm said

Nick Wilkinson, the ex-Evans Cycles boss whose appointment at Dunelm was announced late last year, said: "I am delighted to have joined Dunelm as it gathers pace on the journey to becoming a truly multi-channel business.

"I firmly believe that our homewares authority, combined with our increasing ability to adapt to evolving consumer trends, means that there is very significant potential for growth of the Dunelm brand. We have expanded our customer reach and digital capabilities significantly over the last twelve months and will continue to do so as we exploit the technology assets which we acquired with Worldstores.

"I am excited about the opportunity at Dunelm and look forward to expanding on my plans for the future of this great brand when we announce our full year results in September."

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