Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Finance

UK retailer Dunelm warns it has yet to see clear signs of sustained demand, shares drop

Published by Global Banking and Finance Review

Posted on September 9, 2025

Featured image for article about Finance

(Adds dropped company name in headline)

(Reuters) - British homeware retailer Dunelm cautioned on Tuesday that it has yet to see signs of sustained recovery in consumer demand, sending its shares down 7.3%, even as performance in its new fiscal year was off to a positive start.

Consumers remain cautious about spending in an environment of sticky inflation, slow rate cuts and shifting weather patterns that has created concern about price hikes and unemployment.

Dunelm, which sells items ranging from armchairs to kitchenware, said it was "pleased with early trading" of fiscal 2026.

Regular promotions and discounts have helped the retailer attract shoppers looking for cheaper deals, and the company is also investing in artificial intelligence-powered search to boost customer retention.

Dunelm has also been expanding its physical footprint, targeting opening of five to 10 more superstores in fiscal 2026.

"We've learned to navigate a volatile consumer environment," outgoing CEO Nick Wilkinson said in a statement. He will be succeeded by Sainsbury's executive Clodagh Moriarty at the beginning of October.

Jefferies analysts described the results as "solid enough," but said that the absence of signs of a consumer recovery could be a dampener in the near-term.

In August, several major British retailers wrote to finance minister Rachel Reeves warning that further tax increases in the upcoming budget, following April's rise in wages and employers' social security contributions, could hurt living standards.

Dunelm reported a pre-tax profit of 211 million pounds ($286.41 million) for the year ended June 28, up 2.7% from the prior year, and in line with analysts' consensus at the same level, according to a company-compiled poll.

The Leicester-headquartered company added it was confident of progressing toward its medium-term target of a 10% market share.

($1 = 0.7367 pounds)

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Frances Kerry)