Dunelm chief steps down after guiding firm through transformation and Covid
Dunelm’s chief executive Nick Wilkinson will step down after seven years after leading the company through a strategic change, digitalisation, and the pandemic.
Wilkinson will remain at FTSE-listed Dunelm until a successor is appointed.
Sales at Dunelm have been consistently rising over the past few years as its personalised, relatively low-cost homewares go down well with consumers.
Dunelm chair Alison Brittain said Wilkinson has been a “tremendous leader for Dunelm”.
“He has successfully guided the Group through a global pandemic, driven a step-change in the digital offer, established strategic capabilities across the business including in tech and data, and maintained the unique, entrepreneurial culture which makes Dunelm so special,” she added.
“Nick will continue to lead the business over the coming months as we transition to a new CEO, maintaining a focus on delivering long-term, sustainable growth for all stakeholders.”
Wilkinson said: “It feels like I’m approaching the right time to step away from full-time executive life [but] I’ve never been more confident in the opportunities ahead for this special brand.” There remains lots to do, and much to learn, as Dunelm continues to grow and develop.””
Sales tick up despite headwinds
The retailer simultaneously announced a strong set of results for the 26 weeks ended 28 December, posting a 2.4 per cent uptick in sales.
It said its market share in homewares increased to 7.8 per cent, up 0.3 per cent year on year, while its customer base grew 4.3 per cent year on year.
Profit before tax grew 0.2 per cent year on year, to £123.1m, while diluted earnings per share grew 0.9 per cent to 44.6p.
Wilkinson said: “Our performance over the first half reflects the growing attraction of the Dunelm offer for a wide range of customers, and the quality and resilience of our business model.
“Amidst a challenging backdrop for retail, those attributes have helped us deliver increased sales, a strong gross margin, and both customer and market share growth.”
However, Dunelm still has to grapple with a range of other inflationary impacts – including but not limited to a new packaging tax and a rise to employer’s national insurance, which it has only been able to “partially offset” with productivity initiatives.
Wilkinson opened its first inner London stores during the latter half of last year, as well as acquiring 13 stores in Ireland. The company will open its 200th store this year.
Dunelm’s share price has dipped in the past year by 10.59 per cent, and is down by more than 30 per cent in the last five years, as Brits rebounded from Covid home works.