Dunelm gains market share as first half delivers growth

Residence furnishings and homewares retailer Dunelm has reported a progress in Q2 and first half gross sales as furnishings delivers robust outcomes.

Based on its newest buying and selling replace for the 13-week interval ended 28 December 2024 and for the primary half, complete Q2 gross sales rose 1.6% to £490m, with digital gross sales representing 40% of complete revenues.

As for the half yr interval, complete gross sales elevated 2.4% to £894m, with digital gross sales representing a complete of 38%.

Gross margin elevated 10bps year-on-year in H1 with robust operational grip maintained on enter prices alongside distinctive buyer worth. Dunelm added that it has made progress in opposition to its strategic objectives, with significant enhancements to its on-line buyer expertise, its first inside London retailer and 13 small shops acquired in Eire. The retailer anticipates opening 5 new superstores within the second half of FY25.

“We consider that we now have once more gained market share, demonstrating the worth, relevance and selection we proceed to supply our clients,” Dunelm stated.

“Digital participation was up 3ppts to 39% within the first half, as clients continued to reply effectively to the continued enhancements we’re making to our digital expertise. Click on and Accumulate gross sales grew strongly as we additional elevated the breadth of our ranges and the proportion of merchandise out there to be collected in shops.

“Our furnishings classes carried out notably effectively, from our couch collections by way of to smaller objects comparable to eating chairs and low tables. Our rising vary of merchandise at excellent worth factors, with enticing supply choices, continues to enhance our proposition and resonate effectively with clients.

“Within the quarter, we acquired Homefocus Group Restricted in Eire, giving us a platform in a brand new geography by way of an current footprint of 13 small shops, the place we’re already promoting Dunelm merchandise. Now we have additionally introduced Dunelm to inside London for the primary time, opening our Westfield London retailer forward of the Christmas ‘peak’ buying and selling interval. We’re studying from these new ventures and are excited concerning the alternatives they supply.

“We additionally stay focussed on the opening of latest UK superstores, and anticipate opening 5 within the second half.”

Wanting forward, Dunelm added that it expects pre-tax revenue to be throughout the vary of market expectations for FY25, a variety of £207m to £217m.

Nick Wilkinson, Chief Government Officer, commented: “We’re happy with our efficiency within the first half; we’re rising gross sales and quantity, with clients once more responding effectively to the worth and selection we provide throughout our ranges.

“On the identical time, we’ve made vital strategic progress throughout a number of initiatives that are serving to us to enhance our enticing, specialist supply and proceed to achieve market share. Now we have taken our first steps exterior the UK with the acquisition of 13 shops in Eire, opened our first inside London retailer in Westfield, and made additional enhancements to our on-line buyer expertise which is contributing to continued robust digital progress.

“As we transfer into the second half of FY25, we now have efficiently launched our Winter Sale which is being effectively acquired by clients in search of superb worth throughout a large alternative of related merchandise for the colder months. As we navigate this difficult surroundings, we see much more alternatives to harness our distinctive enterprise mannequin, elevate the bar on our proposition and fulfil our ambitions as The Residence of Properties.”