The Dunelm Group has issued an update on trading for the third quarter of its current financial year, comprising the 13-week period ending 29th March 2014.
The retailer reports that total revenue for the third quarter grew by 9.9%, following four store openings in the period. These included one relocation of an existing under-sized superstore and one superstore which replaces two high street shops that have subsequently closed. This takes the total superstore openings in the financial year to date to 10. Dunelm's store portfolio is set to reach 136 stores at the year-end – its medium-term target is to operate from 200 UK superstores.
Growth in like-for-like sales for the quarter was 5% – according to Dunelm, reflecting the absence of snow disruption as well as ongoing investments which have strengthened its customer proposition and driven sales. These include ongoing development in multi-channel operations, the further roll-out of the Dunelm At Home proposition, enhanced customer service training, continuation of TV advertising and an expanded spring catalogue.
Nick Wharton, chief executive, says: "Dunelm has again delivered a period of solid progress. This reflects, in part, our willingness to invest to underpin the longer-term growth of the business - including in increased advertising to build brand awareness, further enhancing our home delivery proposition, and expanding our in-home consultation service. These investments will continue, increasing our operating cost ratio whilst benefiting sales and further strengthening our market leading proposition.
"With clear opportunities to develop further our in-store offer, to expand our store portfolio and to benefit from our exciting multi-channel and customer service initiatives, the board remains confident in the growth prospects for the business."
