Dunelm Achieves 3.8% Growth in the Fiscal Year Against the Trend, Breaking Through the Sluggish Consumption with "Three Key Strategies"

Dunelm, a well-known British home furnishing chain store, recently released its fourth fiscal quarter results, achieving a 4% growth in total sales, reaching £415 million, thanks to the strong performance of full-price products and summer promotional items.

The digital business also showed a positive trend. In the fourth quarter, the proportion of digital channel sales reached 42%, an increase of 2 percentage points year-on-year. The company has made initial achievements in AI-driven search and recommendation functions, providing support for the improvement of conversion rates and customer orders. In the 13 weeks ending June 28, the best-performing categories included outdoor furniture and outdoor decorative accessories. Dunelm benefited from the high temperatures at the beginning and end of the quarter. 

At the same time, for the full year ending June 28, total sales increased by 3.8% year-on-year to £1.77 billion, of which digital sales accounted for 40% of total sales. The company expects full-year profits to meet expectations, approximately £210 million. Nick Wilkinson, Chief Executive Officer, commented on the company's performance: "We had a good performance in the fourth fiscal quarter, continuing to achieve growth and making further progress in our strategy." "Customers have responded positively to various products in our summer promotions. Especially during the high-temperature period, they paid more attention to outdoor spaces, so the demand for our summer living series products was very strong." Despite the increasing proportion of online business, Dunelm has not slowed down its offline expansion. During the quarter, the company invested in opening four new stores, including a small superstore in Trowbridge, large superstores in Manchester and Southend, and a store relocation to a larger premises in Peterborough. This means that Dunelm opened a total of six new superstores throughout the fiscal year.

Over the past fiscal year, Dunelm opened a total of 6 new superstores, and recently completed the opening of a new store in Merthyr Tydfil, Richmond, bringing the total number of stores to approximately 200. Previously, Dunelm achieved its first cross-border expansion by acquiring the 13-store soft furnishing brand Home Focus at Hickeys in Ireland at the end of 2024. Wilkinson said, "These strategic initiatives have brought this year to a close, a year in which we have achieved many 'firsts', including entering the international market for the first time (Ireland), deploying artificial intelligence to improve our website experience, and opening our first store in Westfield White City in central London." In April 2025, Dunelm acquired the design brand Designers Guild and its design archives, and reached a brand licensing cooperation arrangement with it. This brand is high-end and has a long history, which complements Dunelm's previous positioning, helping it build a higher-end product line, enhance its brand image and gross profit margin. In terms of the supply chain, Dunelm has continuously strengthened its local manufacturing and on-demand customization capabilities. It expanded the production lines of customized products such as curtains, shutters, and roller shutters in its factory in the British Midlands, which not only can meet immediate delivery but also improve profit efficiency through an "end-to-end" model and create local jobs.

Acquiring Designers Guild and upgrading local manufacturing are the two major directions for Dunelm's future development. They will drive Dunelm to shift from "cost-effectiveness first" to a comprehensive competitive pattern of "balanced design and service". Looking forward, Dunelm stated that it has not yet seen signs of consumer recovery but is confident in its ability to further increase its market share. Wilkinson added, "In the context of low consumer confidence, we will not wait for recovery." "We are focusing on providing customers with more relevant products and services, helping to enhance their trust in the quality, value, and diversity of our products, and giving full play to our unique advantages as a multi-category professional retailer." Dunelm recently appointed Clodagh Moriarty to succeed Wilkinson, who has served for seven years, as the next Chief Executive Officer. The latter will retire in September this year. This change of leadership also indicates that Dunelm is transforming into a "technology + retail compound" leader, suggesting that it will more actively adopt new strategies in digital operations, data-driven approaches, and modern retail experiences.

We also sell to Dunelm. The main products we sell are kitchen organizer series (Bathroom Laundry Storage Baskets, Modern Napkin Holder, Kitchen Organizers With Storage Drawer, Trolley Service Shelving Cart) tabletop series，home organizer series and bathroom series products.

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