Homewares retailer Dunelm released its Q1 figures for the 13 weeks ending 1 April 2023 today (20 April) with GlobalData’s lead retail analyst, Emily Salter explaining that it continues to demonstrate its strength as the UK homewares market leader.
She states: “Its Q3 FY2022/23 sales rose by 6.1%, with its year-to-date sales growing by 5.3% to £1,258.3m despite the pressures on consumers’ discretionary incomes.
“Although the retailer could not sustain the exceptional levels of growth it saw in its Q2 (+17.5%), boosted by the earlier timing of its winter sale, demand for its proposition remained robust. Its broad price architecture caters to a wide proportion of consumers and allows shoppers to trade down within the retailer.”
Salter points out that although consumer demand remains unpredictable, Dunelm expects its profit before tax figures for FY2022/23 to be in line with expectations.
GlobalData analysis also shows that demand for Dunelm’s summer ranges will pick up in its Q4, especially with the extra bank holiday in May encouraging consumers to invest in their homes.
She asserts: “The homewares market has been protected by the resilience of more essential categories, notably household goods. Although this is an area where grocers and discounters dominate, Dunelm’s wide range, style and quality credentials make it a more attractive destination than the discounters for items such as textiles and decorative homewares.”
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Dunelm’s channel proposition is also described as meeting consumer demands for convenient omnichannel shopping.
Salter concludes that its online penetration has risen by 1ppt to 36% with its online initiatives such as same day click & collect and trialling online bookable consultations continuing to pay off.