Dunelm sales slip as pent up demand eases against ‘demanding backdrop’
Dunelm posted dented sales after last year saw a flurry of pent up demand post-lockdown.
In first quarter results, the homeware retailer said its sales were down eight per cent compared to the same period last year.
Bosses said the performance came despite “a challenging environment”, posting sales of £357m.
A dip in sales had been anticipated owing to the first quarter of last year raking in strong sales due to pent up demand and a rescheduled summer sale.
Shoppers have shied away from big ticket items including furniture in recent months, with the cost of living crunch meaning consumers have delayed pricey purchases.
However, Dunelm said it was “confident in the resilient of our business” and did not change its financial guidance for the 2023 financial year.
“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,” Nick Wilkinson, chief executive officer, said.
As a cold winter approaches for cash-strapped Brits, Dunelm will be forced “to compete with cheaper and second-hand alternatives whilst facing increasing operational costs,” Russell Pointon, director of consumer at Edison Group said.
“Despite this challenging outlook, senior management remains confident that its strong business model and the value it offers customers will enable the group to successfully navigate this period of economic uncertainty,” he added.