Dunelm profits and sales leap as it navigates ‘challenging’ economic environment

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Full-year profit jumps 34.9% at 170-store homeware retailer

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LU homewares and furnishings retailer Dunlam has posted bumper annual profits and sales, but said it is prepared for a “challenging environment” of cost of living challenges and inflationary pressures.

Profit before tax in the group reached £209 million for the full year, an increase of 34.9% and sales rose nearly a fifth in the year to July, to £1.55 billion.

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As the Office for National Statistics (ONS) unveiled this morning that consumer inflation was still running at 9.9%, Nick Wilkinson Boss of Dunlam told the Evening Standard that “waves of inflation” have since begun in the business world. was flowing. The pandemic, but this year had “began in strong fashion” in his group.

However, the boss of the group, which operates more than 170 stores across the UK, said a change in prices could not be ruled out due to the current economic conditions.

“If we have to, we will reluctantly increase prices, but only if we feel we are still offering customers outstanding value for money,” he said.

But he added: “We are not seeing this trading down effect that other retailers have talked about. Different customers will make different choices, some will trade, some will trade and we will not judge.

He said the Leicester-based chain, which markets an exclusive homeware range from ‘This Morning’ presenter Holly Willoughby, is already working with its suppliers to reduce inflation by redesigning products, developing new factories, and more. Was “working really hard” to do. opportunity.

The business reported that costs had increased, adding £17 million to its operating base during the year, citing factors contributing to inflation and payroll.

The group raised an average of more than 7% earlier this year to cope with the cost of living crisis for its 11,000 workers, and Wilkinson said “financial well-being” was an “open topic of conversation” within the business.

He also said that while Dunlam welcomed upcoming government support on energy bills for businesses and customers, his company had always strived to be energy efficient.

“Which business is certain and our customers really appreciate it too, so I think the fact that there is a package of support and it will be explained and then homes and businesses can adapt is the most important thing. , perhaps even more important [package] So everyone can adapt accordingly,” he said.

In July, Dunlum hired outgoing Whitbread boss Alison Brittain to replace Andy Harrison as president of the home furnishing retailer.

Credit: www.standard.co.uk /

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