Sales and profit soar at Dunelm as customers more comfortable with online shopping

Furniture and homewares retailer Dunelm has reported an increase in sales and profit as digital drives “very strong growth”.

According to its interim results for the 26 weeks ended 26 December 2020, total sales rose 23% to £719.4m from £585m compared to the same period last year.

Pre-tax profit swelled 34.4% to £112.4m from £83.6m.

Dunelm saw digital sales growth of 111%, with ongoing development of digital capabilities and successful scaling of technology and operations to respond to growth in peak volumes.

On its digital performance, Dunelm revealed: “Customers have become more comfortable with shopping for homewares and furniture online, and the recent investments we have made in our digital capabilities and capacity have enabled us to scale up rapidly to service this demand. Online traffic grew by c.95% and we saw a strong improvement in customer conversion, for both home delivery and Click & Collect.”

Nick Wilkinson, Chief Executive Officer, commented: “In light of another strong performance, I would like to express my sincere thanks to the whole Dunelm team, and our committed suppliers, who have continued to work tirelessly throughout these extraordinary times to ensure the highest safety standards for ourselves and our customers, and also for their dedication and commitment to continuing to improve our customer proposition.

“Sales were particularly strong in the first quarter, before we had to navigate the various restrictions which impacted the remainder of the period. These restrictions have become more severe in the second half of our financial year, with all but one of our stores currently closed, although we continue to serve customers through our digital channels, which have significantly advanced during the last year.

“Beyond the near-term uncertainty, we have never been more confident about the future. Dunelm is a market leader with a challenger brand mentality, in a large and growing segment. We have a clear runway to grow active customers and their frequency across our total retail system and to realise our long-term ambitions.”