Following today’s release of Dunelm’s figures for the 13 weeks ending 30th September 2023; Emily Salter, lead retail analyst at GlobalData, a leading data and analytics company, offers her view: “After an impressive FY2022/23 when the homewares specialist’s sales rose by 5.5%, Dunelm has kicked off its new financial year with a strong 9.2% rise in total sales, albeit on weak comparatives. The retailer said that its growth was largely driven by volumes as its wide product range and price architecture continues to draw shoppers away from upper-mass market and premium players like Next and John Lewis. The retailer will also have benefitted from a wet summer, with consumers spending less time outside and more time in their homes, as well as being more likely to go on shopping trips when the weather is poor.
“The retailer reported that growth was “broad based” across categories, with upholstery doing especially well. This is impressive given that GlobalData forecasts the upholstery market to be much weaker than homewares in 2023, and is likely testament to Dunelm’s fast lead times (five days for most ranges) as well as its reputation for good quality. The later onset of cold weather will have boosted sales of winter items at the start of its Q2 in October, with Dunelm’s website featuring a “cosy zone” edit, including products such as thermal curtains, blankets and thick duvets which will be popular again this year as consumers try to keep their energy bills down.
“Dunelm’s online penetration continued to rise steadily, growing by 2ppts to 35% in Q1. Its huge online product range and good fulfilment options appeal to shoppers, without being a detriment to the performance of its stores as many consumers still want to touch and see home products before purchasing. The retailer is continuing its store roll-out plan of five to 10 openings per year for the next two years, and this is likely to include opening in ex-Wilko sites. This will help Dunelm achieve greater focus on urban areas, especially in southeast England and London, a move that echoes rival IKEA’s focus on this area, enabling Dunelm to attract new shoppers.”
