Dunelm drives Q3 growth with store expansion and strong sales
Dunelm, the Enderby-based homewares giant, saw sales reach £462m in Q3, driven by homewares and furniture.
Sales growth of 6.3% for the 13-week period to March 29 was also boosted by strong digital and Click & Collect sales, as well as a successful Winter sale and the start of Spring/Summer ranges.
Q3 marked the opening of the retailer’s 200th store in Merthyr Tydfil, with plans to open five new superstores across the year.
It also completed a freehold acquisition in Kingston upon Thames, a key target area of ‘white space’, which will open as a Dunelm store in FY26.
As guided in the interim results in February, as a result of this acquisition, Dunelm now expects capex for the year to be between £60m and £70m.
Whilst Dunelm is “pleased” with its performance in an improved market, it says it is “too early to say whether or not we are seeing an improved trend”.
Dunelm said: “ We are also mindful of increased levels of uncertainty and volatility in the current environment, and the known labour cost headwinds. We remain confident in our plans and the strategic progress we are making, and are on track to achieve our milestone of 10% market share in the medium term.”
It was announced in February that chief executive Nick Wilkinson will step down after seven years in the role. Wilkinson, who turns 60 next year, said it is “the right time to step away from full-time executive life”. He will stay on until a successor is in place.
He said: “We’ve had a good third quarter, with strong growth and further strategic progress. The Dunelm brand continues to attract a broad range of customers, offering outstanding value and quality, and we’re really pleased with how our new ranges are being received.
“We remain committed to driving market share gains through growth across all our channels. March saw the opening of Dunelm’s 200th store in Merthyr Tydfil, an exciting milestone, and we continue to see new opportunities, filling ‘white space’ in our physical estate through a variety of store formats. At the same time, we’re improving customers’ digital experience, including through Click & Collect, which has continued to gain momentum.
“Our customers are now enjoying getting their homes and gardens ready for summer and we’re focused on being as relevant as possible for the warmer months ahead. We remain very mindful of the wider backdrop and the impact of increased uncertainty on consumer sentiment, but maintain our focus on strengthening Dunelm’s position as The Home of Homes.”
