Dunelm has overtaken the owner of Argos to become the UK's second-largest homeware retailer.

The boss of the Syston group said he was also confident of leapfrogging market leader John Lewis in the near future.

New figures from retail analyst Verdict concluded that John Lewis held 6.2 per cent of the UK homeware market, with Dunelm accounting for 5.9 per cent and Home Retail Group, parent company of Argos, at 5.2 per cent.

Nick Wharton, Dunelm's chief executive, said: "It shows we are very focused on what we do. Do I now think we can overtake John Lewis? To be honest, yes I do."

The group yesterday reported its market share had risen during the six months to December 31 after it saw like-for-like sales – which only includes stores open for at least a year – increase by 1.1 per cent, while the overall homeware market fell by 1 per cent on the same measure.

The company said pre-tax profit for the same half-year period rose by 7.8 per cent to £52.2 million, while total revenue increased by 8.8 per cent to £299.9 million.

Mr Wharton said: "The advantage we have over our competitors is two-fold. People trust the value they get in a Dunelm store.

"Also, the range we sell in our stores is e normous. It's wider than anywhere else.

"For instance, we sell ready-made curtains from £15 to £250."

The group said 11 superstores opened in the period, including one relocation, which took the number of outlets to 124.

Four further sites are set to be launched in the next six months, including one relocation.

The company aims to eventually operate up to 200 stores.

Dunelm, founded in 1979 on a Leicester market stall, launched a website for mobile phones last month.

It aims to increase the proportion of sales via the internet from 2 per cent to 10 per cent of total revenue.

Professor Jim Saker, associate dean at Loughborough Business School, said: "This is a good story which shows that by focusing on one particular area, that is homeware, they are able to pick off what are generally larger companies."