Dunelm Sees Sales Increase as UK Consumers Seek Value
(Reuters) - British homeware retailer Dunelm Group reported a 6.3% rise in third-quarter sales on Thursday as value-seeking consumers flocked to its affordable products, driving demand.
The group expects its full-year pre-tax profit to align with market estimates, driven by a sustained growth in its customer base.
WHY IT'S IMPORTANT?
Amid surging living costs and looming uncertainties due to price hikes and job cuts, consumers are tightening their belts and turning to retailers like Dunelm, which is leveraging discounted sales and product expansion to gain market share.
Like other retailers, Dunelm has been actively investing in its digital platform and integrating AI-powered search functionalities to enhance customer engagement and retention.
KEY QUOTE
"We remain very mindful of the wider backdrop and the impact of increased uncertainty on consumer sentiment, but maintain our focus on strengthening Dunelm's position as The Home of Homes." CEO Nick Wilkinson said in a statement.
BY THE NUMBERS
The home furnishings company reported 462 million pounds ($610.3 million) in sales for the three months ended March 29, a 6.3% year-on-year rise.
For the fiscal year ending June 30, Dunelm expects to report pre-tax profit in line with analysts' estimate of 204 million-214 million pounds, according to a company-compiled poll.
The group also reiterated its target of achieving 10% market share in the medium term.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sumana Nandy)
