Dunelm performed well in the third quarter of last year given that stores were closed for most of the period, with sales falling by 16.8% to £236.6m. Dunelm successfully transferred many customers online while stores were closed during the third national lockdown, with digital sales growing 241.6% year-on-year to £218.6m and 83% of its prior-year sales being covered through home delivery and click and collect. As a result of its resilient performance, as well as improvements in gross margin, Dunelm expects profit before tax for the full year to exceed current expectations of £120m-£125m.

Dunelm rolled out click and collect services to 160 stores during the quarter, allowing it to recover around 35% of its store sales from the previous year. It should continue to offer this service once stores reopen for shoppers who favour convenience and those still apprehensive about shopping in-store. Dunelm’s online shoppers will also soon be able to create an account on the retailer’s website in order to track orders and save favourites, further improving the online shopping experience.

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The homewares specialist has been busy preparing its stores to reopen through refurbishing existing stores, increasing inventory levels and improving in-store tablet-based selling capabilities. Its newest store in Newcastle-under-Lyme will feature a ‘make and mend’ department for repairing and reusing items, which will appeal to environmentally conscious shoppers looking to upcycle things they already own.