Sales at Dunelm have grown in Q2 by 1% year-on-year, to £483 million, in a challenging market.
Sales were also up by 4.5% in the first half, to £872 million, driven by volume. Goss margin for the first half also increased by 160bps.
The sales growth for the second quarter was against a very strong comparative of 14% growth in Q2 last year, and the digital sales mix was up 2ppts to 37%. Dunelm opened three new stores in the quarter, taking the total to 183, and remains on track to achieve its full year store opening plans.
During the quarter, Dunelm continued with its plans to improve the customer proposition across its retail system. It expanded ranges across categories and continued to optimise its website.
The retailer also launched its Home of Homes brand platform with its marketing campaign which ran until November. Over Christmas, the Delivering Joy initiative continued to go from strength to strength, with over 125,000 gifts donated to local causes – twice as many as last year.
Nick Wilkinson, ceo, commented: “The breadth of our range and outstanding value of our proposition continues to be well received by customers, resulting in a strong sales performance for the first half despite a tough market backdrop.
“Consumers remain under pressure and are actively seeking true value at all price points. Our customer offer and positioning as the ‘Home of Homes’ resonates particularly well in this environment, and we are confident we have continued to gain market share. At the same time, our strong operational grip continues to help us navigate the difficult environment and manage our margins.
“Supporting our communities remains at the heart of Dunelm and I would like to thank all our colleagues and customers for making our recent Delivering Joy campaign our biggest ever, donating an incredible 125,000 gifts to local good causes during the Christmas period.
“Looking ahead, we remain excited about the compelling opportunity for growth for our business. We have continued to execute at pace on our strategic plans, opening four new stores over the first half of the year, whilst continuing to expand our ranges and improve our digital offer. Our new spring collections look fantastic in store and are being really well received by customers as we reach the end of our winter sale, leaving us well placed to make further progress in the months ahead.”
