Business

Dunelm stockpiling best-selling brands ahead of Brexit

Homeware retailer Dunelm said it has started stockpiling some of its best-selling lines to hedge against potential disruption to supply chains ahead of Brexit
Homeware retailer Dunelm said it has started stockpiling some of its best-selling lines to hedge against potential disruption to supply chains ahead of Brexit Homeware retailer Dunelm said it has started stockpiling some of its best-selling lines to hedge against potential disruption to supply chains ahead of Brexit

DUNELM has started stockpiling some of its best-selling lines to hedge against potential disruption to its supply chains ahead of Brexit.

The homeware retailer - which has six outlets in Northern Ireland - said there could potentially be some disruption at "deep sea" ports following the UK's impending departure from the European Union, and it has started "purchasing incremental stock of some best-selling lines and securing additional supply chain capacity".

It imports less than 1 per cent of its goods from EU countries.

Dunelm follows the likes of Pets at Home, Tesco and Marks & Spencer, which have also revealed plans to shore up supplies ahead of Brexit.

The company said it is cautious in its outlook as it remains exposed to any impact Brexit may have on currency and consumer confidence, and is hedging against a sudden decline in the value of the pound against the US dollar.

Dunelm added it will support employees who are EU nationals - 2.5 per cent of its workforce - in obtaining "settled status" if and when needed.

Chief executive Nick Wilkinson said: "We are cautious about the outlook for the remainder of the financial year due to the continuing political uncertainty in the UK.

"We are confident in delivering market expectations for the full year assuming no material change in the macro-economic environment."

He added the company traded well through its key winter sale period as the firm reported a 24 per cent increase in pre-tax profit for the six months ended December 29 to £70 million.

Revenue rose 1.2 per cent to £551.8 million with like-for-like revenue growth of 6.9 per cent, which was bolstered by online sales growth.

Mr Wilkinson said the like-for-like revenue growth, both in stores and online, demonstrates the progress Dunelm has made in improving its "multi-channel proposition whilst maintaining the breadth and depth of our specialist customer offer in homewares".