Profits soar at Dunelm as firm increases UK market share

Leicester-based homewares retailer Dunelm has seen its profits rise by almost 45% over the last 12 months and now says it is becoming “the first choice for home”.

Profits before tax at the listed giant soared to £157.8m for the year to June 26, while revenues rose by over 26% to £1.34bn.

Dunelm increased its share of UK homewares market by 1.6% to 9.1% during the period.

Nick Wilkinson, chief executive officer, said: “We delivered an excellent performance in FY21, despite our stores being closed for more than a third of the year, demonstrating the strength and resilience of our business model and the adaptability and commitment of our colleagues and suppliers.

“The digital investments we had made enabled us to rapidly adapt to the changing environment and deliver strong growth and an improved customer experience. We are emerging from the pandemic as a stronger and better business, having transitioned from being a physical retailer with digital aspirations to being a proven, digital first, multichannel retailer.

“We have renewed purpose, bold ambitions and an increased opportunity to attract more customers and grow their frequency. We aim to be our customers’ 1st choice for home, helping everyone to create the joy of truly feeling at home, now and for the generations to come. Our business plans will deliver for all our stakeholders, and include our commitment to a Net Zero Pathway, with an absolute reduction in emissions of 50% by 2030.

“Whilst the macro-outlook remains uncertain and we are seeing some industry-wide issues such as ongoing supply chain disruption and inflationary pressures from raw materials, freight costs and driver shortages, we feel well placed to continue managing these challenges.

“Trading in the first ten weeks of the new financial year has been encouraging, with growth against strong comparatives and continued market outperformance.”