Dunelm navigates ‘challenging market’

Leicester-based homeware giant Dunelm has shared its latest trading update for the 13 weeks ending March 30, as it works on navigating the ‘challenging market’ for the rest of the year.

Total sales for Q3 surged by 3% to £435m, primarily driven by a surge in volume, with brick-and-mortar stores and digital channels contributing to this growth, with digital sales climbing by 1 percentage point to 37%.

Continuing to deliver sales growth Dunelm saw a 3% increase in total sales to £435m, however March, in particular, experienced softer demand, reflecting unpredictable trading conditions.

Nick Wilkinson, chief executive officer, said: “We have delivered a resilient performance in Q3, with continued volume-based sales growth through a period of more challenging and volatile market conditions. Whilst discretionary spending remains under pressure, our relevant and attractive product offer continues to resonate with customers as they shop across our broad ranges to find quality and value for all areas of the home.  

“This performance reflects our deep-rooted understanding of our customers and the effectiveness of a total retail system which continues to drive growth across the store and digital channels, bringing further market share gains. At the same time, our operational grip continues to mitigate ongoing cost headwinds and has supported a strong gross margin performance.

“Looking ahead, we are excited about strengthening our customer offer, and the breadth of growth opportunities this presents. Consumer behaviour continues to be difficult to predict, however, we remain confident in our ability to navigate current conditions whilst delivering further sustainable growth and market share gains.”