The 22,500 price rises of stuttering sofa chain

FURNISHINGS chain Dunelm warned it may have to hike prices by around 5pc on 22,500 sofas, curtains and bedding sets as it posted plunging profits.

The retailer has been squeezed due to the slump in the value of sterling since the Brexit vote as it imports about 95pc of the goods it sells, paying for them in foreign currencies such as Indian rupees.

The warning over prices came with half-year results which revealed profits had tumbled 26pc to £55.9m – prompting a 9pc fall in its shares yesterday. It closed down 61.5p at 623p.

It is understood 22,500 out of its 30,000 product lines will see a price rise, but chief executive John Browett insisted that customers ‘wouldn’t notice’.

‘We haven’t put prices up in five years,’ he said. ‘This is a very small increase given the big change in the dollar.’

Browett, 53, added: ‘ We have become more efficient with our suppliers. This will be the last time we put prices up for quite a while. ’

The pound has fallen by about 17pc against the dollar since the EU referendum, and about 10pc against the euro.

Dunelm, which has 157 stores, said sales fell 1.6pc in the 26 weeks to December 31. It followed the acquisition of rival WS Group, which includes Kiddicare, for £8.5m in November.