Dunelm expects to accelerate store openings

LONDON (Reuters) - Home furnishings group Dunelm (DNLM.L) said on Tuesday the closure of rivals such as MFI and Rosebys was creating opportunities to accelerate its store opening programme.

Chief Executive Will Adderley told Reuters the firm expected store openings this year to exceed the seven to eight achieved over the past couple of years.

Dunelm has already legally committed to seven sites, it said in a statement and Adderley added: "We have a lot more behind that in advanced negotiations."

Dunelm has a medium-term target of around 150 stores, compared with its current tally of about 90, but Adderley said this goal might be lifted as it got closer to being met.

Adderley also said he did not expect much change to analysts' full-year profit forecasts after the firm posted a 5.6 percent drop in like-for-like sales in the 26 weeks to December 27, but also said it had lifted gross margins by 100 basis points.

(Reporting by Mark Potter)