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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).
Market size £bn
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.