Strong demand at Dunelm

Revealing its fourth quarter trading results, Dunelm says it is ‘pleased with the strong customer response since re-opening.’ The home and housewares retailer saw an overall sales decline of -29% for its total sales in trading quarter from March 8 to June 27. However, total sales in June leapt up by +20%, reflecting ‘a level of pent-up consumer demand’ as well as the delayed start to Dunelm’s Summer Sale.

Overall like for like sales for Dunelm’s stores were down 49.7% for the quarter, while online grew by 85.2%. The retailer reports that home delivery fulfilment from its central distribution facility exceeded previous record levels in every week since April (jumping by +141% in May and up by +106% for the quarter).

Direct to consumer’ fulfilment by suppliers is now running at four times the level it was before the coronavirus crisis. Since Dunelm’s stores have fully opened, its online home delivery sales have been around 30% and click & collect have been around 12% of the total sales mix respectively.

Dunelm reflects on its ‘swift decisions’ to cut costs at the start of the crisis, for example, halting overseas orders and asking suppliers not to replenish stores. It recognises substantial increases in its current costs due to social distancing measures and the need for new technology investment for ecommerce and digital platforms.

Above: Dunelm is trialling virtual shopping, so consumers can explore the home offering at Redditch and Erdington stores from the comfort of their own home.
Above: Dunelm is trialling virtual shopping, so consumers can explore the home offering at Redditch and Erdington stores from the comfort of their own home.

The retailer has been championing various shopping options for consumers, including virtual personal shopping appointments and bringing click & collect orders directly to consumers’ cars.

Nick Wilkinson, Dunelm’s chief executive officer states: “The decisions we have made over the last few months have been guided by our principles and values and we are emerging from this unprecedented period as a stronger business. This has given us the confidence to accelerate our digital transition and introduce new ways of serving our customers.”

 

Top: Dunelm saw sales rise by 20% in June.

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