The period from Black Friday onwards proved particularly challenging, with Dunelm competing against high levels of discounting from competitors, which negatively impacted its guided profits despite its previously downplayed expectations for its H1 profitability. This spooked investors, with Dunelm’s share price falling by c.16% when markets opened, as investors sought alternatives less tied to diminished consumer confidence. Nonetheless, Dunelm highlighted furniture availability as a key area for improvement, with potential sales likely lost to competitors such as IKEA and Next. The cold snap in January will also boost consumer desire for Dunelm’s specialism in cosy items, compared to the unseasonably mild December. The rollout of the retailer’s apps to both iOS and Android will also support its online growth, which will help Dunelm as consumers opt for home delivery rather than braving the cold.”Share This Article

Source: The Times January 15, 2026 22:44 UTC