Homewares retailer Dunelm has reported an 8.3 per cent fall in total sales to £356.7 million for the 13 weeks to 1 October, and warned of a “challenging winter for consumers” as the cost-of-living crisis deepens. The decline marks a sharp reversal from the pandemic-driven boost to home-focused spending over the past year.
The group said it faced strong comparatives with the previous year, when sales were lifted by pent-up demand and its summer discount sale. Compared with pre-pandemic trading in 2019-20, first-quarter sales were up 36 per cent.
Dunelm cautioned over a difficult economic backdrop, with inflation at a 40-year high of 10.1 per cent in September putting pressure on households. Retailers across the sector are reporting a drop in consumer confidence and signs that shoppers are reining in spending.
Chief executive Nick Wilkinson said: “As we enter what will clearly be a challenging winter for consumers, our absolute focus remains on making every pound count for everyone through a tight grip on operations. We will continue to offer outstanding value at all price points so our customers can make their own choices around adapting to the economic backdrop.”
The group noted that profitability slipped in the first quarter, with gross profit margins down year on year as customers returned to more normal shopping patterns. Digital sales plateaued, making up a third of group sales, in line with a year ago, as shoppers returned to stores.
