Dunelm Group plc has released an update on trading for the final quarter of its financial year to 28th June 2014, and for the 52 weeks ending on that date. Over the full financial year, total sales grew by 7.8% and like-for-like sales by 2.1%.
Final quarter like-for-like sales growth of 5.5% continued the improving trend of previous quarters. According to Dunelm, this reflects in part the impact of the summer 2013 heatwave which held back performance in the early part of this financial year, but also the positive impact on sales from the retailer's investment in key growth initiatives.
Dunelm's latest investments continue its strategy of strengthening and differentiating its customer proposition for the long term. These include the investment made in new multi-channel fulfilment operation introduced in October, the retailer's first national TV advertising and the roll-out of the Dunelm At Home proposition.
Sales from new space contributed 5.7% growth over the full financial year, reflecting Dunelm's continuing strong store expansion programme, which included 12 new openings in the year.
Over the financial year as a whole, multi-channel revenues represented 6% of total sales, increasing to 7% in the final quarter, and this summer will see Dunelm complete an upgrade to its front-end web platform.
Having opened two new stores in the quarter, Dunelm's superstore portfolio now comprises 136 stores, compared with its medium-term target of 200 UK superstores. With five new leases signed since the last update, the pipeline of legally-committed new store opportunities now stands at 113, all anticipated to open in the financial year to June 2015.
Nick Wharton, chief executive, comments: "We have continued our strategy of increasing scale through new store openings and multi-channel growth whilst investing in our customer proposition for the future. During the period we have increased the rate of that investment, ensuring we continue to provide our customers with market leading choice and expertise, helping us to maintain our differentiation from competitors over the long term.
"With a strong pipeline of new stores, further enhancements to our multi-channel capability and a positive response to the continuing development of our customer proposition, the board remains confident in the group's long-term growth prospects."
