Home goods retailer Dunelm is looking to expand its store footprint in the capital as it builds on double-digit revenue growth in the six months to 2nd January.

The out-of-town retail chain said total sales grew 10.3 per cent to £448.1m with underlying like-for-likes edging up by 2 per cent.

Pre-tax profit was up 10.7 per cent to £75.5m with the retailer generating a net £96.8m cash from operations and announcing it plans to return more than £75m of that to shareholders through regular and special dividends.

The retailer opened three new stores and refurbished another as it ended the period with 157 shops, including 151 out-of-town superstores.

London is a key focus for expansion. CEO John Browett said: “We still need around 50 stores to give us national coverage in the UK. London and the South East provide a significant portion of this opportunity, although we recognise that it is a challenging market to penetrate.

“We are already at eight stores in the Greater London area and can see opportunities to increase this.”

Related: Dunelm paid £4.8m to acquire Fogarty brand

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