The boss of Dunelm has warned that its prices will “accelerate” in the next few months amid surging costs.
The Leicestershire-based home furnishings chain is under pressure from high freight costs, rocketing utilities bills and wage inflation.
Chief executive Nick Wilkinson told the PA news agency that the company had kept prices flat in previous years but has recently imposed increases and expects more to come.
He said: “Price increases have been a feature of the past 12 months as we’ve seen pressure on costs.
“That will probably accelerate in the next few months, but we recognise the position of our customers so will continue to provide a wide choice on pricing.
“Some may choose to price down but we have those products available so don’t expect to see a huge impact there.”
The comments came after Dunelm revealed that customers sprucing up their homes during the pandemic helped drive record profits over the past half-year, although it warned that the economic backdrop remains “uncertain”.
It added that trading in 2022 so far has been “encouraging” as it shrugged off the potential impact of the spread of the Omicron variant of coronavirus.
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It came as the Leicestershire-based business revealed that pre-tax profits jumped by more than a quarter to £140.8 million for the six months to Christmas Day, compared with the same period last year.
The group said it is therefore on track to meet profit guidance which it increased last month following strong festive sales.
Dunelm stressed that the wider economic outlook “remains uncertain” but added that it is well positioned to navigate inflationary pressures amid soaring costs for retailers.
It said the fact that it sells “largely own-brand product” and has strong supplier links will help shelter it somewhat from major headwinds.
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