Dunelm eyes increased market share amid strong Q1
The retailer is currently on track to hit its full year target of five to ten new store openings, including relocations
Dunelm has seen sales rise by 9% to £390m in the first quarter of the year, following a strong period of growth that was largely driven by volume, amid plans to further its market share.
The group welcomed a strong performance in both its stores and digital channels, with the contribution from digital sales rising to 35% in the period.
Growth was broad based across a range of categories, and its new autumn/winter ranges, including collaborations with Disney and the Natural History Museum, were said to “resonate well” with customers.
Its upholstery ranges also performed strongly in the period, with good growth in sofas and sofa beds. It has also improved availability in categories such as cabinet furniture, and introduced new lines that include live plants and personalised products.
Following these results, the group said it is “seizing the opportunity to amplify our brand and extend our reach” with the roll-out of a new marketing campaign which launched at the end of September. According to the group it is its “biggest and widest reaching campaign to date, taking the brand to new audiences and showcasing the breadth of our homewares offering”.
The group said it is also looking to extend and digitalise its total retail system. With one new store opened during the quarter and a further three stores expected to open before the end of Q2, it is on track to hit its full year target of five to 10 new store openings, including relocations.
CEO Nick Wilkinson said: “Our proposition, which offers an increasingly wide range of homewares products, continues to prove popular with customers, as we delivered another strong sales performance in Q1. We continue to have a laser focus on outstanding value, and customers can now find even more choice with the introduction of new ranges such as live plants.
“We are reaching more and more UK consumers through our expanding store estate, and our latest marketing campaign, which is our biggest to date, showcases the breadth of the Dunelm offer, reinforcing our position as ‘The Home of Homes’.”
He added: “There remains a significant opportunity for Dunelm to take further market share and we are excited about the progress we are making against our plans, through targeted and thoughtful investment, in order to seize the compelling opportunities ahead of us. We remain very confident about our prospects for continuing to drive sustainable growth.”
