Dunelm has done well and looks inexpensive – should you invest?

Home furnishings retailer Dunelm has proved resilient and looks inexpensive

A general exterior view of a Dunelm homeware and home furnishings retail store
(Image credit: John Keeble/Getty Images)

These are tough times for big retailers. They are beset by the cost of living, uncertainty about the global economy and rising staff costs, especially after the recent increase in employers’ national-insurance contributions. However, some well-run retailers have managed to rise above the turbulence.

One of these is Dunelm Group (LSE: DNLM), which we successfully tipped three years ago in issue 1114, selling in issue 1152 for a profit of £789. This proved to be a wise decision, as for the next two years the stock largely trod water. Lately, however, it has started to take off, so this is a good time to consider another punt.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri