Dunelm Group plc has said it let "basic retail disciplines" slip as it reported a 6.7% fall in underlying pre-tax profits to £102m for the year to June 30.

The company said it has been challenged by the recent Worldstores acquisition, but with strong growth in like-for-like online, with home delivery sales up 37.9%, its focus on a more seamless digital future will mean a more advanced digital development capability, providing profitable SKUs transferred to the Dunelm website, and a strengthened technology platform overall.

Dunelm group said its plan in order to do this has resulted in the Kiddicare site closure, and this month will see Worldstores sites closed too, with all colleagues focused on Core Dunelm. The new Dunelm.com platform will be introduced in February to March 2019.

Chief executive officer, Nick Wilkinson commented: "Following healthy sales growth over the past year, we are now taking steps to simplify the business under the core Dunelm brand, with one web platform and an integrated supply chain. This will allow us to respond more quickly to the changing consumer environment and drive future profitable growth.

"Dunelm's purpose is to help everyone create a home they love. Our committed colleagues, our great products, and our increasingly integrated in-store and online offer, mean we are well placed for success as a leading multichannel specialist.

"The Worldstores acquisition has given us the key ingredients for a step change in our digital capabilities. We are preparing to launch Dunelm.com on our new proprietary technology to give us much greater agility in improving our customer proposition. This is a new and exciting chapter for Dunelm as we fully embrace digital retailing.

"The UK retail environment remains challenging, but against this difficult background we have traded in line with expectations during the current financial year to date."

Moving forward Dunelm has said it will evolve the customer proposition significantly with an extended choice of 100k products, stores will become service and experience orientated, market leading virtual and physical services aim to inspire and advise and value and affordability will be embedded into ranges and deals. The company also plans on the opening of ten new superstores in the year (including one relocation) adding 6.1% new space, and completion of six refits