Dunelm shares tumble as hot weather hits sales and boss admits it should have stocked air con and fans

See more This is Money on Google - save us as a Preferred Source Updated: 11:03 EDT, 8 September 2026 Dunelm shares crashed after its new boss unveiled plans to cut £100million in costs as heatwaves deterred shoppers from spending on their homes.The homewares giant has insisted it will stock more products to help consumers cope with the scorching temperatures next summer as it unveiled a wider shake-up.Shares fell 11 per cent on Tuesday afternoon after the group said it saw ‘significantly softer trading’ in the first six weeks of its current financial year, which started on June 28, due to consumers finding it too hot to shop.Chief executive Clo Moriarty said there had been ‘undoubtedly unmet demand’ for heatwave essentials such as air-conditioning units and fans, which the business ‘could have sold multiple times over.’The business will also look at its ranges of garden furniture and thin bedding as Britain grapples with increasingly warm summers. Too hot to shop: Consumers were put off going out during the heatwaves - but Dunelm could have also stocked more products like fans and air-conditioners, the company said'Our product mix is for the home but not geared towards hot weather living or large proportions of garden furniture,’ she admitted.Footfall had dropped during the extreme heat as customers found ‘other things to do than spend time mooching and getting inspiration in our shops’ or opted to stay inside altogether, Moriarty said.She had ‘taken a deep and honest look’ at the retailer since joining from Sainsbury's last October.Moriarty said she hopes to cut costs over three years by simplifying processes across the business and using artificial intelligence (AI) and other technology to improve stock availability.Cost-cutting has already led to around 95 job losses across the business so far, including in its distribution team.As part of her strategy, she plans to open up to ten new shops each year over the next three years to cover new ground in London, the South East of England and Northern Ireland.Sales rose 3.1 per cent to £1.83billion in the year to June 27 while profits were flat at £211million.Dunelm was also affected by weak consumer confidence in its last financial year, with the business citing ‘geopolitical uncertainty, elevated interest rates and inflation, and a changing UK political landscape’ as dampening spending power.It said customers are ‘shopping more selectively and increasingly seeking value through promotions, particularly in discretionary categories such as homewares.’British businesses, including Sainsbury’s and Debenhams, have called on the UK Government to act more quickly to close a customs duty loophole which gives overseas retailers – such as Shein and Temu – an advantage.Moriarty echoed their concerns and said there must be a ‘fair and level playing field’ between retailers.She also believes there is an opportunity to cash in on graduates who are staying at home amid a tough labour market. She said the retailer is seeing demand from young people who want to ‘make their childhood homes more adult friendly’ in a ‘post-uni refresh.’Mark Crouch, market analyst for Etoro, said: ‘The underlying business remains in decent health, with market share gains, stronger cash generation and growing digital penetration, but flat profits and a sharp slowdown in early trading have taken the shine off that resilience.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you