Dunelm reports sales surge in July and August as home spending grows

Dunelm has reported a surge in sales over the past two months as demand for homeware continues to flourish during the Covid-19 pandemic.

The retailer said sales grew 59% year-on-year in July and by 24% in August following the reopening of all its stores by 22 June. Dunelm puts this strong performance down to a variety of factors, including pent up customer demand over the store closure period, footfall growth in its out of town superstores, and “continued growth in our home delivery offer”.  

In a trading update published in July, Dunelm revealed that eCommerce sales grew by 105.6% in April, May, and June this year as customers flocked online amid store closures. And it revealed its intention to continue investing heavily in its digital capabilities after rolling out initiatives including contactless click & collect and a virtual shopping service during lockdown.

In the latest update, Dunelm commented: “Whilst the year to date performance has been materially ahead of our initial expectations, it is very difficult to provide any meaningful guidance on the future outlook given the uncertainty in the wider economy and the potential impact of further regional or national lockdowns. However, we remain confident in our ability to adapt to the environment and are well positioned to continue to grow market share.”

The homewares market has proved to be one of the most resilient areas of retail over the pandemic with consumers increasing spending on their homes. Last week, online retailer Cox & Cox reported a 59% year-on-year increase in sales for its second quarter, while DFS revealed it had a year-on-year order intake growth that is equivalent to around £70 million in revenues in the six weeks since 14 June.