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October 15, 2020

Dunelm shrugs off damage caused by initial lockdown sales slump

By GlobalData Retail

Dunelm has made a comeback from its initial setback caused by the lockdown period with total group sales growing a staggering 36.7% to £359.1m in Q1 2020/21 against a strong comparative the previous year. The significant uptick was supported by Dunelm’s continued investment in digital, and online sales now account for almost one-third (29.7%) of its total sales; an increase of 12.1 ppts on Q1 2019/20. Additionally, pent-up demand for physical shopping helped store sales grow by 16.7%. In light of its strong performance, Dunelm intends to pay back the £14.5m it claimed on the Job Retention Scheme.

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What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
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  • How might the Chinese government react?
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by GlobalData
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Dunelm’s performance is particularly commendable against a weak homeware market that will contract by 9.5% in 2020 as a result of financial uncertainty and reduced social gatherings. GlobalData expects the home specialist to remain the market leader in homeware this year, with its share set to grow 1.2ppts to 8.8%, far outpacing competitors such as IKEA, which will maintain a flat share of 5.4%. With £175.2m in net cash under its belt and increased home delivery fulfilment and warehousing capacity, Dunelm is well placed to navigate through the upcoming peak trading period and unpredictable Covid-19 headwinds.

With lockdown restrictions returning in areas across the UK, Dunelm will capitalise on the resurgence of consumers staying home and capture new customers as a result. It aptly introduced its ‘Home. We get it.’ campaign this month, featuring a stripped-back advert that resonates with the consumer experience of being at home, which will increase its brand awareness and appeal as a low-cost homeware and furniture specialist.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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