While there were some more troubling details in soft furnishings seller Dunelm’s latest quarterly update there were also plenty of items to cushion the blow for shareholders.
The recent strength in the company’s sales is testament to the chain’s appeal to customers. Dunelm is getting the basics of retail exactly right, serving up what people want, when and where they want it.
A big part of the recent transformation of the group has been the development of its online proposition and it is not sitting on its laurels here, continuing to refine and improve things.
“There are costs associated with keeping up with shoppers’ needs, including footing the bill for having lots of extra inventory to mitigate any supply chain problems,” said AJ Bell’s Russ Mould.
“Ultimately this is much better than visitors to its stores regularly coming away without the item they wanted and eventually becoming disillusioned with the brand.
“It is impressive that despite these extra costs and rising freight and raw material inputs the company is for now able to sustain and even improve margins.
“There may be tough times ahead as the cost of living crisis continues to bite into Britons’ household budgets, however Dunelm and its management look to be doing everything under their control to set the business on the right path.
“And innovations like its partnership with the Natural History Museum show it is thinking of new ways to broaden and deepen its market appeal.”