Dunelm sees sales soar as locked-down Britons renovate and buy onesies online

Dunelm has reported soaring revenues for the first half despite seeing its stores shut in the November lockdown.

The homewares retailer saw online sales up 111% in the six months to end December as locked-down consumers re-did their homes and attempted to better utilise space. 

Revenues were up 23% on the same period in 2019, to £719.4 million, with pre-tax profit up 34% to £112.4 million. It comes after the retailer recorded 4.8% revenue growth to £1.1 billion in the year to end June 2020. 

Boss Nick Wilkinson told the Standard that the firm saw “sales growth across all categories” in the period - with star performers ranging from adult-sized teddy onesies to thermal lined curtains, and a notable rise in crafting products. 

He highlighted the fact that digital sales were strong when stores were open, saying:  “The business has really matured in terms of its digital capabilities.

"We are doing 70% of our normal run rate of sales with stores closed. If you’d asked me that three years ago I wouldn’t have believed that was possible.

 “It was a really strong performance in aggregate - double the rate of the market growth.”

Wilkinson said he believes the pandemic trend for home improvements and care will remain as office workers move to hybrid working post-pandemic.

"I think the increased importance of your home as a place of multiple activities is going to be enduring," he said. "There's a lot of change taking place in how people are choosing to live their lives, or how they have to live their lives, and that's going to result in lots of interest in homewares categories."

The company’s stores are classed as non-essential retail and are currently closed, but the business has been able to find meaningful work for most of its approximately 10,000 staff.

Analysts John Stevenson and Jonathan Pritchard at Peel hunt labelled Dunelm’s performance “outstanding”.

They said the firm’s interim results “highlight a stronger business” and demonstrate “a business with momentum which far exceeds any macro trends”, adding:  “Management continues to build on digital capabilities and the wider product offering, coupled with increased focus on sustainability.”

Shares were up 5% on Wednesday morning.