DIYWEEK.net

Dunelm Mill is leading the £11bn homewares retail market with 0.1% more market share than former top dog John Lewis, according to Verdict. The consultancy estimated Dunelm now has 6.9% market share, up from 6.1% last year.
The margin between the two retailers has constricted even more than last year's 0.2% difference, according to Verdict. John Lewis' share is now estimated to be 6.8%.

It comes following Dunelm's recent yearly results in which revenues soared 12.1% to £603.7m, a pretax profit increase of 15.1%.

John Lewis has also traded well, with home products trading 6.2% higher during its first half, and Christmas sales over H2 expected to increase sales further.

Verdict retail analyst Andrew Stevens said: "Dunelm's strong performance is thanks to its value stance, broad price architecture, and dedication to customer service. It boasts its vast range as a key driver for customers, with examples including Egyptian cotton towels in 30 colors, 246 ready-made curtains, and 105 bedding collections.

"Combined with high quality value ranges and low priced premium ranges, this has helped Dunelm accelerate through the homewares retailer ranks."

Growth has also been bolstered by store openings, with Dunelm's space having grown up 67% since 2007, from 82 to 127 high street and out-of-town stores, with a long-term target of 200 stores in total.

Verdict said it now anticipates Dunelm will gain market share quickly until it reaches this store target, with expansion making it easy to steal share from smaller specialist rivals.

Once Dunelm has reached its store number target, warned Verdict, it must focus on its like-for-like growth and multi-channel investment in order to hold onto its new market-leading status.