IKEA UK announces strong annual sales growth
IKEA UK has announced that its full year sales grew by 11.9% to £2.46 billion following investment in both its physical and digital channels.
During the period, some 38.5% of the retailer’s total sales were made online compared to 35.8% in the prior year.
To cope with the continued rise in online shopping, IKEA opened a multi-million-pound distribution centre in Dartford in the year, which has the capacity to deliver one million orders annually to customers in London and the south east. The new facility is operated by 100% renewable energy.
It also opened three smaller stores dedicated to kitchen, bedroom, and living room planning in Liverpool, Aintree and Preston as it looked to reach more customers in the north west of England. IKEA said increasing its physical access to customers remains a priority.
Peter Jelkeby, chief executive and chief sustainability officer of IKEA UK & Ireland, said: “Over the past 80 years, we have developed our offering, value chain and sales channels, supporting our vision to create a better everyday life for the many people.
“As we look back on the last year and forward to the next 80, we constantly ask ourselves, how what we do today can be done better tomorrow. Over the past year, we have made significant investments on this journey to create a more accessible, affordable and sustainable IKEA, to meet the evolving needs of UK households.”
The retailer also continued its commitment to support employees during the cost-of-living crisis. A £12 million support package was rolled out across the financial year, and salaries were up 6% on average in January as the retailer matched new Living Wage Foundation rates.
Jelkeby added: “As we look back on a strong, though challenging year, I’m incredibly proud of our co-workers’ dedication and efforts. With our strong culture and performance mindset, we have a clear road ahead of us – to assemble a better future, together, by continuing to adapt, innovate and transform; meeting the needs of both people and the planet in the years to come.”
