Jump in online sales boosts Dunelm

Home furnishings retailer Dunelm has reported a 37 per cent jump in first quarter sales thanks to higher online demand and a recovery at its stores following the initial round of coronavirus lockdowns.
Dunelm sells furnishings ranging from cushions and bedding to kitchen equipmentDunelm sells furnishings ranging from cushions and bedding to kitchen equipment
Dunelm sells furnishings ranging from cushions and bedding to kitchen equipment

The company, which was founded in 1979 as a market stall business, said it expects gross margin to be slightly positive for the year, barring any impacts from coronavirus-related disruption or restrictions.

Chief executive,Nick Wilkinson, said. “Recent months have seen homewares become even more relevant, as people spend more time in their homes up and down the country.”

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In August its Doncaster-based rival, DFS Furniture, highlighted strong performance helped by higher consumer spending on homes and latent demand caused by lockdowns.

After cancelling the last final dividend due to the health crisis, Dunelm said trading had been encouraging since its stores reopened and that it expects to pay an interim dividend in 2021 provided it faced no more “material impact” from the Covid-19 pandemic.

The company, which sells furnishings ranging from cushions and bedding to kitchen equipment, reported sales of £359m for the 13 weeks to September 26.

Digital sales, which makes up nearly a third of the company’s total, saw a 12 per cent jump.