Dunelm to simplify after profits drop in ‘difficult and disappointing’ year
Homeware retailer Dunelm has said it will simplify the business following a “difficult and disappointing” year, which saw profits fall nearly seven per cent.
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The figures
The company said revenue for the year ending 30 June was £1.05bn – 10 per cent up on the previous year (£955.6m).
But its underlying profit of £102m was 6.7 per cent down on the year to 1 July 2017.
Home delivery sales growth as a result of online purchases was up following its acquisition of online retailer Worldstores.
Why it's interesting
Dunelm is the latest in a number of retail firms to find 2018 tough going and also blamed the “challenging” retail environment.
Its acquisition of online retailer Worldstores has also hit its profits – with the company estimating its integration cost, including trading losses, at approximately £30m.
The tough year has led to Dunelm taking steps to “simplify” the business with one web platform and an integrated supply chain.
It hopes the move will allow it to adapt and compete with online retailers.
What Dunelm said
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Chief executive Nick Wilkinson said: “Following healthy sales growth over the past year, we are now taking steps to simplify the business under the core Dunelm brand, with one web platform and an integrated supply chain.
“This will allow us to respond more quickly to the changing consumer environment and drive future profitable growth.”
He added: The UK retail environment remains challenging, but against this difficult background we have traded in line with expectations during the current financial year to date.”