Dunelm, the UK’s largest homewares retailer, has reported a 1.1% rise in total sales to £433m for the 13 weeks to 26 September 2026. Trading strengthened markedly as the quarter went on.
The headline figure hides two very different periods. Sales fell by around 3% year-on-year in the first six weeks, which Dunelm attributes to exceptionally warm weather. They then returned to growth of around 4% in the final seven weeks. For suppliers of housewares, textiles and home furnishings, this is a useful early read on demand heading into the autumn and Christmas peak.
Store-enabled like-for-like sales, which include in-store, tablet and Click & Collect transactions, were down 0.8%. The comparison was against a strong prior-year quarter, when total sales grew 6.2%. Digital sales made up 41% of the total, up one percentage point. Dunelm described the overall market as soft but said it believes it continued to outperform it.
Most categories followed the same pattern of a slow start and a stronger finish. Two stood out. Made to Measure window treatments delivered double-digit growth. Cook and Dine performed well, particularly in the second half of the quarter, which Dunelm credits to recent range reviews and product refreshes.
Range work is continuing. New trials are live in plain-dye bedding, focused on range rationalisation, and in Egyptian cotton towels, aimed at improving value perception.
Stores, stock and margin
Dunelm expects to open two new stores in the first half of its financial year. It has completed five store renewals, with encouraging early sales uplifts, and is carrying out a larger refit in Doncaster. RFID tagging is now live in a small number of stores across most key categories, which the retailer says supports better product availability and store efficiency.
Gross margin rose by 10 basis points, helped by a foreign exchange tailwind. The company is also implementing organisational redesign and cost-removal plans.
Dunelm said the consumer backdrop remains uncertain. Chief executive Clo Moriarty said she was “encouraged by the momentum we built as the quarter progressed”. Profit expectations for the full year are unchanged and broadly in line with last year. First-half profit is expected to be lower, with the benefits of its plans weighted towards the second half. The next update is due on 14 January 2027 and will cover Christmas trading.
What does this mean for your business?
- Weather is still a major swing factor. The recovery in the final seven weeks suggests the early slowdown was tied to conditions rather than a sharp, sustained fall in demand. However, Dunelm itself describes the wider market as soft.
- Range refreshes are paying off in kitchenware. Cook and Dine’s performance points to continued appetite for range review activity, which is relevant to housewares suppliers.
- Fewer, more focused lines may be coming in textiles. The bedding trial centres on rationalisation. If it is extended, suppliers in that category could see tighter ranges.
- The focus on cost and value is set to continue. First-half profit is expected to be below last year, and value perception is an explicit trial objective.
