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Dunelm remains "cautious" despite profit increase

Published: 7 January 2019 - Kiran Grewal

UK homewares retailer Dunelm Group plc has reported its total LFL revenue growth for its second quarter was at an increase of 9%, a pleasing result the company says, which builds upon the positive trading experienced in the first quarter.

Like-for-like store revenue increased by 5.7% year on year as well as online revenue on Dunelm.com continuing to grow in the quarter by 37.9%.

Total revenue  growth of the continuing Dunelm business, including the benefit of changes to the store portfolio, was increased by 9.6% and total growth at group level was up by 2.0%, reflecting the closure of the Worldstores and Kiddicare websites as previously announced.

Dunelm will continue to invest in its new Home of Homes brand campaign, an integrated marketing campaign across TV, radio and social media platforms is part of its Customer 1st drive to reach new customers. It is early days, but initial results are encouraging, the company has said.

Development of its multichannel propostion has been reported as remaining "a priority and we expect to begin the launch of our new website to customers in the fourth quarter. This is slightly later than previously communicated as we evolve and optimise our plans. The new platform will offer Click & Collect to customers, and allow us to develop our multichannel offer with greater agility going forward."

 

The superstore footprint remains at 169, with the group deciding not to open or relocate any stores during the quarter. The company has reported it expects to open one new store, which is a relocation, towards the end of the financial year.

Dunelm's chief executive, Nick Wilkinson commented: "We are pleased with our overall performance in the first half, and are helping more customers than ever to create a home they love. By focusing back on our core business, under one Dunelm brand, we are improving our trading and financial performance.

"The positive like-for-like revenue growth both in stores and online, highlights the strength of our customer offer. Our multichannel proposition is improving all the time, and we are looking forward to introducing our new web platform in the summer, using more flexible technology which will allow us to better serve our customers in a changing retail landscape.

"Despite our strong performance in the year to date, we remain cautious on the outlook for the second half given the ongoing uncertainty in the UK economy. However, in the medium term, we see significant opportunity to grow the business by focusing on our customers and seizing opportunities in a digital world."

 

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