Shareprice

What we do and how we create value

In essence, we operate a simple retail value chain: we buy and sell an unrivalled choice of homeware and furniture products, and deliver them to our customers at home or in-store as efficiently as possible in order to make a financial margin, creating long-term economic and social value for a range of stakeholders. However, the way in which our customers browse and buy products has changed dramatically in recent years and even more so during the Covid-19 crisis. We have taken the opportunity to innovate at pace, developing our business faster than ever before in a society that is also changing rapidly. 

United by a strong purpose and
differentiated by a clear proposition

Buy

We source products that offer choice, value, quality and style by working closely with our suppliers and sharing customer insights and trends, refreshing and updating our range regularly. We are the UK’s homeware category specialist with an unrivalled range – including exclusive brands and own-label ranges – and have become a shopping destination for homeware and furniture.

Sell

Through our ‘total retail system’ we aim to give our customers the most convenient options for purchasing products, whether online in the comfort of their own home or in our stores. We provide services that help: from inspiration to delivery to fitting. At every stage of their purchase, we inspire our customers to make the best choices and communicate with them through our social media channels, dunelm.com website, and in every store.

Deliver

We manage the most cost-effective and efficient delivery of products to stores or straight to customer homes, giving choice, convenience and excellent friendly service to our customers. Wherever our customers, colleagues and products come together we provide experiences that are friendly, local, helpful and build relationships.

Underpinned by our foundations
and shared values

Creating and sharing long-term value

Customers and Communities

  • More reasons to shop at Dunelm through new ranges, departments, stores and services, with commitment to everyday low prices and two end-of-season clearance sales per year.
  • Safe, convenient, inspirational and helpful shopping experiences, however and wherever customers want to shop.
  • Increasing focus on local community engagement, communication and charity support through dedicated social media channels and store colleagues.
  • Company-supported charity (Macmillan Cancer Support) with funds raised through in-store donations, colleague initiatives, Company fund-matching and proceeds from single-use carrier bags.
  • UK corporation tax paid on Company’s profits.

£638k

Raised for charity by colleagues and the Group, of which £533k raised in FY20 with a further £105k company top-up made
post year end.

Colleagues

  • Employment in a long-term growth business, with opportunities to develop and progress in a diverse and inclusive working environment.
  • Fair pay deal with rates above National Minimum/Living Wage levels, plus additional benefits and a commitment to reducing our gender pay gap further.
  • Commitment to providing a safe workplace, promoting physical, emotional and financial wellbeing with a heightened focus on diversity and inclusion.

Colleague engagement up by

9%pts

Suppliers

  • Long-term supplier relationships based on openness, fairness, consistency, honesty, and respect for payment terms.
  • External verification of ethical and human rights standards of Tier 1 supply base for own brand products.
  • Modern slavery policy and risk-based auditing in place for all suppliers.

Valid ethical audit in place for

99%

Of factory base for own brand products for Tier 1 suppliers

Environment and Climate Change

  • Maximise reuse and recycling in all our operations, targeting zero waste to landfill over the medium term.
  • Minimise use of single-use and non-recyclable plastics and introduce more sustainable materials into our product ranges.
  • Reduce like-for-like energy usage and carbon emissions every year.
  • Improve sourcing policies across our supply chain to reduce social and environmental impacts.

15%

Reduction in CO2e relative
to turnover

Shareholders

  • Revised ambitions, proposition and strategic focus to promote growth and long-term value creation.
  • Focus on cost control to maximise efficiency and return on capital employed.
  • Strong free cash flow generation, allowing investment/distribution decisions to be made.
  • Progressive dividend policy with long-term commitment to returning surplus cash to our shareholders whenever we can.

Ten-year TSR growth

480%

Source: Datastream