Homewares chain Dunelm has defied retail gloom to increase new store opening plans, as annual sales reached a record £1.6 billion.
The retailer which has 180 branches and sells bedding, curtains and kitchen products, expects to open five to 10 branches in each of the next two years. That is up from three to five over the past five years, and upcoming launches include taking space at the former John Lewis in Watford.
Sales in the year to July 1 improved 5.5% to £1.6 billion, helped by higher customer numbers, demand for products such as thermal curtains to help reduce energy costs and the firm lowering prices on various goods.
Chief executive Nick Wilkinson said: “In a period of extensive economic uncertainty, we have maintained our focus on enhancing our customer proposition, expanding our offer whilst staying fully committed to value and making every pound count. This has clearly resonated well with our customers, enabling us to continue growing both sales and market share.”
Growth comes despite the cost of living crisis and soggy Summer weather, which has hurt a number of other retailer. Wilko is among high profile retail casulaties.
But Dunelm, which has agreed a fast-track job application process to Wilko staff, did see pre-tax profits fell 7.8% to £192.7 million.
It has been pleased with trading so far in the new financial year but cautioned that “consumer behaviour remains unpredictable”.
The shares lost 12.53p, or 1.16% to 1,070.47p.
