The last few months have not been kind to the UK’s retailers. Not only have we experienced the wettest summer since 1912, but the London Olympics (which were initially expected to boost retail sales through extended Sunday opening hours and a “feel good factor”) appear to have adversely impacted on sales as we have apparently spent most of August glued to our TV screens!

There have been a raft of FTSE-listed retailer trading updates recently and most of them have been duly negative. However Dunelm Mill’s trading update issued on 13 September really caught my eye. For those of you that don’t know Dunelm Mill, they are now the UK's leading specialist homewares retailer. The Group currently operates 127 stores plus an on-line store. They have consciously moved upmarket in recent years and there is a real “John Lewis” feel about the stores these days.

Dunelm’s trading results were really positive with a triple whammy of rising sales, profits and gross margins. However the final paragraph of Chief Executive Nick Wharton’s commentary really caught my eye as it encapsulated the real secrets of retail success in challenging times:

"Looking ahead, we remain cautious of the UK consumer environment and its impact on our trading in the near term [1]. However, with a strong new store pipeline [2], good momentum in multi-channel [3] and a "Simply Value for Money" proposition [4] that continues to resonate with a wide range of customers [5], we remain confident in the future growth prospects for the business."

1. We remain cautious of the UK consumer environment and its impact on our trading in the near term

Retail failure is often preceded by over-confidence and a belief that success will last forever

2. However, with a strong new store pipeline

A terrestrial presence is still key but there is no point opening new stores if they are not sufficiently profitable or just cannibalising existing sales

3. Good momentum in multi-channel

The mail order and internet “offer” must compliment/replicate that in the stores. An inefficient online offer is worse than none at all

4. "Simply Value for Money" proposition

A proposition that customers both understand and buy into but also which is backed up in reality by the retailer every day is crucial

5. That continues to resonate with a wide range of customers

It is no use having a loyal customer base that is too narrow (either in socio-economic or age terms)

There you have it! I personally might have added robust central cost control, flexibility in store wages and excellent stock distribution systems but I am sure that Nick Wharton was looking to be as pithy as possible!