Retailer Dunelm has said its boss of seven years is set to retire as the group revealed sales and profits edged higher in a tough market. The homewares chain said chief executive Nick Wilkinson will retire from the group and full-time executive life, but will stay in his post until a successor has been appointed. Dunelm said it will now kick off a “thorough recruitment process”. Details of Mr Wilkinson’s departure plans came as the group reported pre-tax profits nudging up 0.2% to £123.2 million in the six months to December 28 as sales lifted 2.4%.
But it saw sales growth more than halve to 1.6% in the all-important Christmas quarter, down from growth of 3.5% in the previous three months. Dunelm said it was trading against a “challenging” retail backdrop, with consumer spending under pressure on big items and firms facing soaring wage bill increases from recent Budget measures. Alison Brittain, chair of Dunelm, paid tribute to outgoing boss Mr Wilkinson.
She said: “Nick has been a tremendous leader for Dunelm and amongst his many achievements, he has successfully guided the group through a global pandemic, driven a step-change in the digital offer, established strategic capabilities across the business including in tech and data, and maintained the unique, entrepreneurial culture which makes Dunelm so special.”. Mr Wilkinson said: “There remains lots to do, and much to learn, as Dunelm continues to grow and develop.
“So, for now, it’s business as usual for me.”. The group said it was “encouraged” by early trading in its second half so far and stuck by guidance for full-year profits to rise to £209 million from £205.4 million in 2023-24. But it added a note of caution, saying: “Ongoing consumer caution and sustained labour cost headwinds are continuing to impact all businesses in our sector. “It is important that we face these challenges with a long-term perspective, adapting in ways that keep the customer front and centre, whilst delivering sustainable growth.”.
