Home furnishing retailer Dunelm expects price increases as costs jumps

Home furnishings retailer Dunelm have announced they are likely to 'accelerate' price increases, amid surging costs in the next few months.

The Leicestershire-based chain say they are under pressure from rocketing freight costs, utilities bills and wage inflation.

Chief executive Nick Wilkinson, says the company has kept prices flat in previous years but has recently imposed increases and expects more to come.

Mr Wilkinson said: “Price increases have been a feature of the past 12 months as we’ve seen pressure on costs

“That will probably accelerate in the next few months, but we recognise the position of our customers so will continue to provide a wide choice on pricing.

“Some may choose to price down but we have those products available so don’t expect to see a huge impact there.”

However, Dunelm have stressed they are well positioned to navigate inflationary pressures amid soaring costs for retailers.

The retailer said selling largely own-brand products and having strong supplier links will somewhat shelter them from major headwinds.

They also revealed costumers redecorating their homes during the pandemic helped drive record profits over the past half-year and announced “very encouraging” store sales as customers returned to physical shops.

However, they warned the economic backdrop remains "uncertain."

Mr Wilkinson said: “When we announced our interim results in 2020, we were weeks away from the world being turned upside down.

“Two years later, we are moving forwards as a bigger, better business, with more capability, more resilience, more ambition, and delivering accelerated growth."

Sales since the start of the year have remained “consistent” with the last six months of 2021, the company added, despite pressure from the spread of Omicron and the cost-of-living crisis.

The firm reported a 10.6% rise in sales to £795.6 million for the last six months of 2021, compared with the same period last year.

Shares in the company moved 2.4% higher to 1,295p in early trading on Wednesday.