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UK HOMEWARES MARKET

  • UK homewares market was estimated to be worth £13.6bn in 2019.
  • Dunelm is market leader with an estimated market share of 7.6%, up 40 bps year-on-year, and has been operating in this market for over 40 years.
  • Underlying overall market growth was running at 1-2% per year pre Covid-19 and is forecast to return to previously estimated 2020 levels by 2022.
  • Online growth is outperforming overall market > 4x and benefiting from Covid-19 lockdown trends.
  • Online penetration is currently c.20% (up from 14% in 2018 and 16% in 2019).

UK FURNITURE MARKET

  • UK furniture market was estimated to be worth £11.9bn (2019).
  • Dunelm has c. 1% share in a highly fragmented and challenged market, which has seen competitor erosion as a direct impact of Covid-19 and is expected to consolidate rapidly.
  • More so than the homewares market, this market has been impacted by economic uncertainty, lower consumer confidence and the weaker housing market.
  • Dunelm’s average furniture item value is relatively low and is therefore well placed to withstand an economic downturn.
  • Furniture market growth is forecast to return to previously estimated 2020 levels by 2022.
  • The online furniture market, however, is one of the fastestgrowing online retail markets, with a penetration of approximately 30% (up from c.20% in 2018 and 2019).

HOMEWARES

Market size
£bn

FURNITURE

Market size
£bn

WHAT DOES THIS MEAN FOR DUNELM

  • We are well positioned to grow market share in our large, addressable markets, which are worth around £26bn combined.
  • Market growth was disrupted between March and May 2020, but both sectors grew strongly from June 2020, and we forecast a return to pre Covid-19 growth by 2022.
  • Whilst overall consumer outlook remains uncertain, spending on good value-for-money home improvements has shown resilience, reflecting the importance of home to consumers.
  • Our brand is being considered by more consumers across more categories as we benefit from digital ‘savvy’ shoppers who research online and engage on social posts before purchasing.
  • Operating in sizeable market sectors and with customers who respond well to our integrated digital and physical offer and value-for-money ranges, we are highly ambitious about Dunelm’s prospects to grow share in the UK homewares and furniture markets.