Home Business News Dunelm beats high street doom and gloom

Dunelm beats high street doom and gloom

by LLB Editor
12th Feb 20 10:40 am

Homewares retail chain Dunelm was one of the few high street winners last year.

Pre-tax profits for the six months to 28 December climbed 19.4% to £84.9m, while revenues rose 6% during the period, to £585m.

The company’s secret? Ignoring Black Friday and other pre-Christmas promotions, along with cutting back costs.

A new website rolled out in October also helped, as did adding tablets to allow customers to order in store.

Boss Nick Wilkinson said he plans to open two or three new superstores and will shortly trial a small 5,000 square foot site on a high street.

“This store opening is a low-cost test to understand how our customers react to a smaller, edited range in a location chosen to increase our reach,” he said.

George Charles a spokesperson from www.MoneySavingHeroes.co.uk said, “Finally, a positive story about the high street! Kudos to Dunelm, because it is remaining profitable at a near-impossible time to be a thriving high street business.

“This does feel like a big win for the high street, and arguably the most surprising thing about these profits is that Dunelm did not get involved with Black Friday or Christmas offers – this could be a real sign that consumers are starting to grow weary of  discounting events in the Golden Quarter.

“The homewares chain has also demonstrated how retailers can combine online and offline channels to create success; in-store tablets allowing customers to order in the shop were in part responsible for the jump in profits.

“It is an exciting time for Dunelm and it will be interesting to see if it can continue to build on these profits, but it may be difficult to do so. If we see more stores announcing profits having turned their backs on Black Friday, then we could begin to see the end of – or at least a change to – the coveted discount event.”

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