IKEA reports strong sales growth in UK
Home furnishing giant IKEA saw its total UK sales increase by 11.3% to £1.57 billion in the year to 31 August.
In a statement, the retailer said it had also grown its market share by 0.5% to 7.7% as it looks to double its turnover and market share by 2020.
IKEA UK country retail manager Gillian Drakeford said: “We are delighted to have achieved double digit growth for the second year running and to be in our fourth consecutive year of growth here in the UK. What’s particularly pleasing to see that it has come from our existing business, without the opening of any new stores, as well as from both our stores and our online channel. This puts us in a great position to continue to grow IKEA’s physical presence in the UK in the future.”
In preparation for a focus on bedrooms in the 2015 financial year, IKEA refreshed its bedroom departments in all 18 of its UK stores. This was supported by an introduction of UK-standard bed, mattress and linen sizes to the existing product range. Following the changes, sales in bedroom furniture increased by 15% during the period and market share in this area grew by 1.6% to 10.8%. In addition, mattress sales climbed by 30%.
More recently, IKEA has invested £4 million in rebuilding its cooking and eating departments as it looks ahead to the 2016 financial year. This has included the retailer beginning to sell Swedish food products throughout the store.
In the 2015 financial year IKEA also invested £27 million in lowering prices. The largest price investment in a single product was the FRIHETEN corner sofa-bed which was reduced from £445 to £395 and subsequently became the bestselling product last year.
In addition to store and product investments, IKEA has also announced it will adopt the Living Wage for its employees from April 2016.
In summer 2016, IKEA will open a new store in Reading which will be the first traditional IKEA store to be built in seven years. New store locations have also been secured for Sheffield, Greenwich and Exeter. In addition, IKEA announced in July 2015 that it will trial a number of new, smaller retail formats in the UK and in early November the first IKEA Order and Collection Point was opened in Norwich. A further Order and Collection Point is due to open in Aberdeen next Spring.
Drakeford added: “While we have seen fantastic growth this year, we recognise we have still some steps to take in simplifying the shopping experience and meeting the expectations of UK consumers. In the next year and beyond, we will take some significant steps in our plan to make IKEA more accessible to many more people.”
In addition to ‘bricks and mortar’ expansion plans, IKEA UK will also launch a new website in the coming year.
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