Dunelm launches contact free collections across UK

Dunelm has introduced changes to its Click and Collect service during the coronavirus outbreak.

The majority of its stores remain closed, but it is now possible to collect online orders from them, whilst a delivery to car service is also available.

“The government has been supportive of Click and Collect services as long as they are doing their part to protect the health and wellbeing of the country, and we're happy to say that we are carefully rolling out two new ways to use Click and Collect, following the advice on social distancing and hygiene,” the retailer says in an online statement.

“After successfully introducing our new collection options in a few stores first, we’re confident that our contact-free process works well and we’re ready to bring it to the rest of the UK. Currently, the majority of our stores remain closed, but we are introducing contact-free collection points to stores to give you more options.”

Digital milestone

Earlier this year, we reported that Dunelm’s strong start to FY2019/20 had continued into its second quarter, with the retailer remaining resilient in a challenging homewares market.

Group sales rose £18.8 million to £322.4 million during Q2 (and were up 6% to £585 million for the first half), which was all the more impressive given that Dunelm once again did not participate in Black Friday or additional pre-Christmas discounting.

This allowed it to increase its profitability, with gross margin improving by c110bps during the period. It expected profit before tax for the first half to be £83 million, compared with £70 million in the previous year.

Chief Executive Nick Wilkinson said the company’s new website was key to its success. “The launch of our new digital platform during the quarter marked an exciting milestone for us,” he commented.

“The transition to a modern, flexible, cloud-native platform has already improved our customer experience and will allow us to step change our retail innovation capabilities going forward. Our customers have responded well to the new website during Christmas and winter sale trading.”

“The launch of the new website allowed for increased capacity during the crucial Christmas trading period. It now also offers Click and Collect which will help drive footfall to stores,” stated Amy Higginbotham, Retail Analyst at GlobalData.

“Dunelm continues to expand its exclusive online range and is on track to add 6,000 new online-only products to its proposition this year. It plans to introduce its new Mindful Home collection in spring 2020 and this will allow it to capitalise on the increasing importance of health and wellness among homewares shoppers.”