Dunelm sees sales leap again

from Interiors Monthly August 2021

Beds and bedroom

Sales jump at Dunelm

Dunelm has seen sales jump in the past quarter and has raised its profit forecast.

The chain says it will now see pre-tax profits of about £158m for the year to 26 June, after sales jumped by 43.9% in the quarter compared with 2019 and it delayed its summer sale.

Full-year sales were 26.3% higher than 2020 and 21.4% higher than 2019 at £1.33bn.

Construction of a 190,000sqft distribution centre at the Daventry International Freight Terminal is underway which will allow it to grow its furniture offer.

A further warehouse is being built in Stoke on Trent, where its existing distribution hub is, which will be used for online sales.

The chain delayed its summer sale

Eve disappoints

Eve Sleep saw shareholders react badly to its latest performance. The mattress company told them that sales in the UK and Ireland had grown by 18% in the six months to 30 June, despite non-essential retail being closed for a large part of the period.

Sales were just 15% higher than 2019, indicating it had performed less well than rivals. Shareholders took fright, with the share price dropping from £4.60 to £3.30, before recovering to £3.69 valuing the company at £9.59m. Eve stock has fluctuated between £2.60 and £9.50 in the past year.

Furmanac loss

Upholstery, beds and occasional furniture manufacturer Furmanac made a financial loss after a major drop in sales in its past financial year.

For the year ended 30 June 2020, sales fell from £12.2m to £9.59m. An operating profit of £1.142m became a loss of £239,031. Pre-tax profit of £411,611 became a loss of £474,506.

The accounts, completed last November but not filed until summer, make no mention of the impact of the pandemic, which would have hit performance towards the financial year end. Interiors companies will have to use mediation in disputes with customers under proposals put forward by the Government.

It says that mediation or alternative dispute resolution will be mandatory ‘where disputes arise over a transaction. This means both sides have an alternative to the time-consuming and potentially costly route through the courts and levels the playing field for decent businesses who are doing the right thing.’

The Government’s analysis says it will cost companies £117 to deal with each case, based on four hours’ work. It also says that compensation payments set by mediation bodies tend to be significantly lower than those set by courts.

It also wants to speed up the process, saying that the typical eight-week period where the consumer and business try to settle the dispute before a mediation body will accept a case discourages consumers seeking redress.

Interiors companies were highly ranked on the Government’s criteria but have been included with builders, who had the jointsecond lowest ranking alongside estate agents.

The consultation ends on 1 October.

Then there were 23: the new Stockport store

Charity move marks expansion

JYSK has continue its expansion in the north of England, opening its 23rd branch.

The chain has opened a 12,900sqft store on the Manchester Road Retail Park, Stockport: its fourth in the Greater Manchester area.

The store marks the beginning of a partnership with the Greater Manchester Mayor’s Charity in order to help address the issue of rough sleeping and homelessness across the city region. Using contactless donation points in-store, customers can opt to make a small donation when paying for their JYSK items to pledge support towards the cause.

The partnership will run across the Stockport, Oldham, Bolton and Bury branches.