Soggy summer puts a shine on Dunelm sales

Dunelm proved there was life on Planet Retail this summer as the discount haberdasher and homewares group reported a stunning 16% rise in like-for-like sales over the summer.

The group, which sells cut-price furnishings and kitchenware from 85 out-of-town stores and 12 High Street shops, said cash-strapped Brits have been flocking through its doors.

"Like-for-like sales growth have been up in double digits since the spring and have risen 16% in the 10 weeks to last weekend," said chief executive Will Adderley.

"We have been helped by the change in the competitive landscape with the loss of Rosebys and Woolworths and several independents.

"We are also weather dependent and a miserable summer works in our favour."

Dunelm's average transaction come in at less than £30. In its financial year to the end of July, it reported pre-tax profits of £53 million against £49 million last time with a 9% lift in the dividend to 6p.

While its shares today soared 39¼p to a new high of 317p, Adderley warned: "We have been up against very weak comparatives, we are very nervous about the economic and political uncertainty going into next year and next year's World Cup will not do us any favours."