Ikea posts uplift in sales as profit doubles
Ikea has reported an s11.9% increase in turnover to £2.46 billion for its 2023 financial year as it continues on its UK transformation journey to become more “accessible, affordable and sustainable”.
Furthermore, the homewares and furniture retailer doubled its operating profit to £111.2 million in the year to August 2023 from £49.6 million in the prior year.
Ikea said the sales uplift was a reflection of a 2.2% increase in visits to its stores and 19% more online sales.
During the year, Ikea continued to invest in being more accessible through the introduction of new smaller stores in the north west for kitchen, bedroom, and living room planning. In addition, it is rolling out a new mobile collection service across the UK with Tesco.
IKEA also invested in logistical operations with the opening of a multi-million-pound customer distribution centre in Dartford and worked to improve its energy and waste management performance.
During the year, the retailer announced it would be launching new city centre stores in Brighton and London’s Oxford Street.
Peter Jelkeby, chief executive and chief sustainability officer at Ikea UK & Ireland, said: “In our 80th year, we can be proud of our performance. FY23 was a year in which we improved our customer experience, grew our market share and continued making meaningful investments in our business and people.
“Having overcome challenges posed by Brexit and Covid, we have since focused on a creating a more efficient organisation and improving our profitability, which gives us the financial strength to continue investing for generations to come. Despite a difficult economic climate, our focus remains on new locations, new store formats, and in new services.”
