A number of retailers have implemented expansion plans of late as consumer confidence recovers. This tactic has certainly worked for home wares retailer Dunelm Mill, which has seen an impressive 9.9 per cent growth in revenue to £195.4 million in the last quarter.
In the 13 weeks to the 29th of March 2014, Dunelm Mill has managed to increase like for like sales by 5 per cent through clever use of its multichannel strategy. As well as expanding its store portfolio, the retailer has invested in its website to include an interactive element which allows users a greater level of personalisation as well as the ability to view videos.
Furthermore, its new Product Information System has allowed the retailer to keep track of stock levels in each of its nationwide stores, negating the risk of over-ordering and thus having a positive effect on the bottom line. This system has been possible largely due to the opening of a web fulfilment centre in Birmingham which specialises in delivery research and has made a massive impact since its launch in October of last year.
Chief executive of Dunelm, Nick Wharton, believes the current growth strategy allows for further improvements as investment continues to pour in.
He says; “Dunelm has again delivered a period of solid progress.
“This reflects, in part, our willingness to invest to underpin the longer term growth of the business – including in increased advertising to build brand awareness, further enhancing our home delivery proposition, and expanding our in-home consultation service.
“These investments will continue, increasing our operating cost ratio whilst benefiting sales and further strengthening our market leading proposition.”
During the last financial year, Dunelm Mill opened a total of 10 new superstores across the country and intends to continue this commercial property growth into the new financial year. The results are clearly paying off, with total sales rising 3.2 per cent to £517.9 million in the 39 weeks to the 30th of March 2014.
Dunelm Mill’s commitment to store growth is largely a response to similar moves taken by key rivals such as Ikea, as competition within the home wares sector is incredibly tough at present. As well as having to monitor the progress of specialist rivals, firms in this category must also compete with high street brands and supermarkets looking to expand their offer by branching into the lucrative home furnishings field, with popular examples being Asda and Next.
As growing numbers get on the housing ladder and fuel the demand for home ware, it seems that brands must continually fight to provide excellent prices and service. Fortunately for Dunelm Mill, its strategy certainly appears to be appealing to consumers.
