Dunelm aims to avoid EU disruption by stockpiling
DUNELM has started stockpiling some of its best-selling lines to hedge against potential disruption to its supply chains ahead of Brexit.
The homeware retailer, which has four stores here, said there could be some disruption at ports following the UK’s impending departure from the EU on March 29, and therefore it has started “purchasing incremental stock of some best-selling lines and securing additional supply chain capacity”.
The firm imports less than 1% of its goods from EU countries.
Dunelm has followed the likes of Pets at Home, Tesco and Marks & Spencer, which have also revealed plans to shore up supplies ahead of Brexit.
The company said it is cautious in its outlook as it remains exposed to any impact Brexit may have on currency and consumer confidence, and is hedging against a sudden decline in the value of the pound against the US dollar.
Dunelm added it would support employees who are EU nationals — 2.5% of its workforce — in obtaining “settled status” if and when needed.
Chief executive Nick Wilkinson said: “We are cautious about the outlook for the remainder of the financial year due to the continuing political uncertainty in the UK.
“We are confident in delivering market expectations for the full year, assuming no material change in the macro-economic environment.”
He added the company traded well through its key winter sale period as the firm reported a 24% increase in pre-tax profit for the six months ended December 29 to £70m.
Revenue rose 1.2% to £551.8m with like-for-like revenue growth of 6.9%, which was bolstered by online sales growth.