Dunelm Group Plc (LON:DNLM), the UK’s leading homewares retailer, has announced the launch of its three-year strategic growth plan. Separately today, the Group has announced its Preliminary Results for the 52 weeks to 27 June 2026.
Winning Hearts & Homes – highlights:
We are building on the existing strengths in the business to capture a unique opportunity to accelerate Dunelm’s growth trajectory and deliver across the next three years:
- Increased customer loyalty and spend, through repeat visits and share of wallet
- A return to sustainable mid-to-high single digit sales growth, supported by increasing LFL sales, digital acceleration and store investment
- Investing whilst delivering consistently strong returns and cash generation; adjusted PBT margin1 of c.11% and Return on Capital Employed2 (‘ROCE’) of c.30%
- Commitment to our disciplined capital allocation policy, remaining within our targeted 0.2x – 0.6x net debt3 : EBITDA4 ratio
Capturing the growth opportunity ahead of us requires investment, funded by our cash generative model and structural cost savings. Our plans include:
- Saving to invest through the removal of c.£100m5 of unproductive costs from the FY26 base by FY29, and fully reinvesting in initiatives that support higher sustainable growth
- Non-recurring expenditure totalling £30m – £40m across the next two years, primarily to strengthen our foundational infrastructure, and to be reported as adjusting items
- Increased capital expenditure, totalling c.£125m above our recent run-rate across the next three years, including expansion and renewal of the store estate.
Our customer-led plan is focused on three strategic growth engines to:
1) Become the homewares specialist with something for everyone
- Improving and simplifying our ranges, enabling repurposing of store space
- Building trust on affordability with optimised pricing architecture
- Maximising use of the Dunelm brand across products to increase recognition, simplify our offer and support margin discipline
2) Deliver seamless omnichannel experiences that customers love
- Extending our reach, with up to ten new openings per annum for the next three years, across c.100 potential locations6
- Optimising our existing platforms and store estate, with 50+ planned renewals by FY28
- Creating connected, engaging experiences to build basket size and frequency
3) Transform our capabilities to drive sustainable growth
- Focusing our resources, by simplifying the business whilst investing in critical growth capabilities
- Improving end-to-end processes for agility, productivity and speed of execution
- Unlocking the benefits of technology to improve efficiency and customer outcomes
Clo Moriarty, CEO, commented:
“Dunelm is a special business. We have a strong track record, a market-leading position and, importantly, a significant opportunity ahead of us. We believe we can capture that opportunity through a customer-led, self-funded plan that builds on the many strengths that have made us successful for nearly fifty years.
“We want to reach new customers and deepen our connection with existing ones, earning more loyalty and becoming the specialist they turn to for every mission in the home, whether they are refreshing a room, solving a practical problem, or creating a space they love.
“By making it easier and more inspiring to shop with us, and investing in the capabilities we need for the future, we believe we can accelerate our growth and strengthen our market leadership.
“We are not changing the fundamentals of Dunelm – we are building on them with greater ambition. By winning more of our customers’ hearts and homes, we can create a bigger, better and bolder Dunelm for all of our stakeholders.”
1 52-week statutory PBT excluding adjusting items, expressed as a percentage of total sales
2 Adjusted net operating profit after tax as a proportion of total assets excluding non-current liabilities and current lease liabilities
3 Cash and cash equivalents less total borrowings. Excludes IFRS 16 lease liabilities
4 Operating profit plus depreciation and amortisation of property, plant and equipment and intangible assets plus loss on disposal and impairment of property, plant and equipment and intangible assets plus depreciation of right-of-use assets
5 Compared to FY26 base. Before growth in volume-related costs and inflation
6 Management information using proximity to existing Dunelm and competitor locations
Strategy Update
Dunelm will host an in-person Strategy Update at Somerset House for analysts and institutional investors this morning at 09:30. A copy of the presentation will be made available at corporate.dunelm.com.
Results Presentation
A pre-recorded presentation on its Preliminary Results for the financial year ended 27 June 2026 was also published at 07:00 this morning on the Company’s corporate website. Please access this recording at corporate.dunelm.com.
