City briefs: Dunelm disappointed; Online success for Joules
Leicester-headquartered Dunelm has called the new English lockdown restrictions “unexpected and inconsistent” after being told it will have to close for the next 28 days.
The retail giant was responding after the latest legislation announced in England relating to COVID-19 restrictions failing to include ‘homewares’ on the list of permitted retail businesses.
Dunelm will now close 145 stores in England but will continue to operate Click and Collect services
A statement from the company said: “Whilst the new restrictions have increased the level of uncertainty in the outlook for the financial year, we remain confident in our proposition and the adaptability of our total retail system. We look forward to welcoming customers back into our stores when the restrictions are lifted.”
Market Harborough lifestyle retailer Joules says it is trading ahead of expectations for the first 22 weeks of its current financial year.
The firm says that 70% of its sales are now through its online channels. Ecommerce turnover is up 35%, with high street sales falling 18% since re-opening in July.
Nick Jones, CEO of Joules, said: “Joules has continued to trade well with sales in the financial year to date ahead of the Board’s expectations. We have seen strong growth in our customer base during recent months, benefiting from our focus on digital marketing, the attractive locations of our stores and the increasingly broad customer offer through our Friends of Joules digital marketplace.
“As we enter the peak trading season, the retail sector in England faces the challenge of having to close non-essential stores for the next four weeks. Despite this difficult backdrop, Joules has a very strong brand and a flexible business model, which has underpinned the Group’s robust performance to date during Covid-19. In addition, we are well positioned from an operations and financial perspective, having built on the experience and lessons from the Spring lockdown.
“Our AW20 collections have been well received by customers and our Friends of Joules digital marketplace continues to deliver growth ahead of our expectations. As a result, we enter the peak trading period in a strong position. Our e-commerce business now represents 70% of our retail sales and we have made significant investments in capacity to ensure that we can continue to drive and satisfy demand through this increasingly important channel as we adapt to changing consumer behaviours.”
