Published on 12 - April - 2012
Dunelm continues to grow in tough climateAn area of wasteland in Kettering is currently under construction to be transformed into new retail units including a Dunelm Mill store, as the retailer announced a 0.6% like-for-life sales growth in Q3.
As at March 31, 2012, Dunelm had net cleared funds of £50.2m
The land on Northfield Avenue was given the green light to be built up by contractor H B Pearce back in 2010, but work has only begun this week on levelling the area in preparation for building work to begin. The new store will feature a mezzanine floor and an in-store café.
It comes as Dunelm announced total sales growth of 10.7% for the 13 weeks ending March 31 2012, totalling £154.1m, a good increase on the same period last year, which saw sales of £139m.
The store reported less optimistic LfL growth, which it said was due to "depressed store footfall patterns in February and March." Two new superstores in Exeter and Stafford, a Greenford store which opened just last week and an anticipated store for Cambridge this June will bring the number of anticipated new stores opened up to 15 for the current financial year. Last year's acquisitions saw contribution from new space up 10.1%.
Dunelm chief executive Nick Wharton said: "Our focus on the development of our Simply Value for Money proposition and growth both through new stores and through our multi-channel offering has seen Dunelm achieve a solid sales performance in what remains a very demanding retail environment.
"It is prudent to remain cautious about the wider economy and, recognising its impact on consumer confidence, we will maintain our disciplined approach to the management of gross margin and operating costs. However, with a clear growth strategy and strong pipeline of new stores ahead we remain confident in the future prospects for the business."
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