Family-owned home furnishing chain Dunelm Mill has revealed the secret of how it is beating the recession. Although sales this year have been hit by the economic downturn, the UK-based company has seen its share price rise by an impressive 50% year on year. Second-generation CEO Will Adderley says success is down to retail basics.
"We try to make our stores an exciting place to shop. We want to have a very broad audience, from your granny to your mum to you. We think we are quite classless. We target the whole market," he told UK newspaper The Sunday Times.
Will, who took over the running of his parents business in 1996, also said the business focuses on being competitively priced. Profits have grown by 56% over the last five years and Dunelm, which has revenues of £391.8 million ($623 million), is managing to successfully compete with better-known rivals.
Husband and wife team Bill and Jean Adderley saw a gap in the market for ready-made curtains and began the business from a market stall in Leicester 30 years ago. When the company was floated on the sock market in 2006, Jean sold her stake in the business for £102 million ($162.3 million).
Dunelm Mill now has 92 outlets across the country selling ready-made curtains, towels and bed linen along with a wide range of other items for home and garden. The company sees an average of 200,000 people shop in their stores each year and the family is worth an estimated £320 million ($509 million).