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Dunelm Group
Dunelm Group

+10.81%

Retail / Furnishings retailer

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Risks

1. Risk of Over-Dependence on UK Market: Dunelm is heavily dependent on the UK retail market with more than 90% of its sales originating in the UK. If the UK economy were to suffer a downturn, Dunelm’s performance could be significantly affected.


2. Risk of Upward Pressure on Costs: The cost of wages, input materials, transportation costs, and competition may all put upward pressure on Dunelm’s costs, and this might lead to a decrease in profitability.


3. Risk of Macroeconomic Conditions: Shifts in macroeconomic conditions and changes in consumer purchasing habits may cause instability to the group’s financial performance.


4. Risk of Competition: Dunelm is facing increased competition from a growing number of online retailers, as well as traditional bricks and mortar companies. This could lead to reduced sales and pressure on prices, impacting profit margins.


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