Dunelm buys Fogarty linen brand as first-quarter like-for-likes jump
Dunelm has posted a jump in like-for-like sales in its first quarter and revealed the acquisition of 200-year old linen brand Fogarty
Like-for-likes at the homewares retailer increased 5.5% to £183.3m for the quarter ending October 3, while total sales increased 12% to £202.3m year on year.
The sales increase marks a slight slow-down compared to the same quarter last year due to an explosion in growth from its nascent home deliveries business.
In the first quarter last year home deliveries grew 83.8% to £9.2m, but this year growth slowed to 25.9% as home delivery sales reached £11.5m.
Dunelm has brought in a number of high-profile hires including Gavin Chappell from Asda in order to drive multichannel growth.
The homewares retailer has bought Fogarty, which has a reputation for high-quality pillows and duvets, having previously sold the product in-store and online.
Dunelm chief executive Will Adderley said the Fogarty deal, alongside the acquisition of Dorma a few years ago, “strengthens our specialist homewares retail proposition and provides a number of potential growth opportunities for the medium term”.
Adderley added: “Our sales performance was strong in the first quarter, reflecting the steps we have taken to refresh our product range, improve seasonal merchandise and to create an improved shopping experience for our customers in-store.
“The growth achieved in like-for-like store sales is particularly pleasing, and we maintained a solid performance in home delivery following the launch of our new website in July.”