Value homewares group Dunelm has posted a sales increase and claimed greater market share.

The retailer reported a like-for-like advance of 1.9% in the fourth quarter, bringing the full-year decline to 0.6%.

Dunelm generated revenues up 11% to £123.8m in the quarter to July 2, resulting in a full-year total of £538.5m – an improvement of 9.3%.

Chief executive Nick Wharton said: “Our focus on constantly improving our customer offer has allowed us to gain market share while expanding gross margins.

“At the same time our future growth prospects have been enhanced through strengthening the pipeline of new stores and the continuing development of our multichannel footprint.”

Gross margin is expected to have risen by about 120 basis points over the year, reflecting effective management of cost pressures.

Dunelm now has 103 superstores, having opened 10 during the last year. The retailer sees potential for an eventual store-count of 200.