(Corrects first paragraph to say that the supply disruption is
attributable to new distribution centre and not Worldstores
Feb 8 British homewares retailer Dunelm Group
Plc said half-year pretax profit fell 26 percent, hurt
by a weaker market and short-term disruption to the supply chain
at its recently opened distribution centre in Stoke.
Dunelm, which sells items including bedding, curtains and
furniture, warned that it would increase prices on a number of
products in the coming months to offset the impact of a weak
"Retail prices have been increased on a small number of
products to negate the impact to margin; we expect to put
through further price rises on a number of categories in the
second half," the FTSE mid cap retailer warned.
Shares in the company were down 8.8 percent at 624.5 pence
as of 1030 GMT, after hitting their lowest since Jan. 2013
earlier in the session.
Dunelm operates 161 stores, of which 157 are out-of-town
superstores and the other four located on high streets.
Robust growth in consumer spending has been one of the main
factors sustaining Britain's economy since the Brexit vote last
June. However, retailers fear spending will fall as inflation
erodes real earnings growth.
Last month, Halfords, the country's largest bike
seller, also said that a slump in sterling makes it inevitable
that prices will rise in 2017.
Dunelm said like-for-like sales for 26 weeks to Dec. 31 --
the first half of its financial year -- were down 1.6 percent
and the retailer warned that market conditions remained
In November, it bought WS Group in a deal worth 8.5 million
pounds to double the size of its internet operation and add
brands such as Kiddicare and Achica to its portfolio.
($1 = 0.8002 pounds)
(Reporting by Rahul B in Bengaluru; Editing by Biju