Homeware retailer, Dunelm, has reported a 5.7 per cent year-on-year sales increase in the three months leading up to Christmas.

The retailer, which has stores in Cheltenham and Gloucester, also reported a 37.9 per cent growth in online sales in the 13 weeks to 29th December, as reported by Retail Gazette.

Revenue growth was boosted by the closure of Dunelm's Worldstores and Kiddicare websites.

The company is set to introduce a new website in the summer, to make it easier for customers to shop and improve its online sales further.

Punchline said: "It's nice to see some good news for the retail sector in the new year. Dunelm is obviously getting is proposition right on pricing and products and striking the right balance between physical stores and online sales."