UK homewares retailer Dunelm has announced the launch of a new generative AI (genAI) tool to boost online product discovery.

The company, which has transitioned from a first-generation search engine to Google Cloud's Vertex AI Search for Retail platform, aims to improve and personalise the customer journey on Dunelm.com by making it easier to discover and engage with its products.

Dunelm chief technology and information officer John Gahagan said that improving product discovery is a key part of the retailer's current strategy.

"Partnering with Google Cloud brings innovative generative AI solutions to our online search capabilities, making it much easier for customers to find the products they want," continued Gahagan. "This is an exciting step forward in providing a best-in-class online shopping experience.

"By leveraging the power of AI, we're making it easier than ever for our customers to find inspiration, supporting our growth potential as 'The Home of Homes.'"

Early testing of the platform in 2024 saw a reduction in search friction, with less than one per cent of search terms returning zero results.

The rollout was done in partnership with Kin + Carta, recently acquired by Valtech, which supported with the initial design and experimentation of the programme.

The news comes a month after Dunelm revealed that despite a "softer market", sales at the homewares retailer jumped by four per cent to £1.7 billion during the 12 months ended 29 June.

In its preliminary FY24 results, the company reported pre-tax profits growth of six per cent to £205 million, up from around £192 million in 2023.

Dunelm's strong results buck a current trend in the homewares market which has seen household names such as Carpetright and Wilko collapse after many years in business.

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