IKEA sales up 11.3% in UK
IKEA has reported an 11.3% rise in its full year UK sales to £1.41 billion as it embarks on plans to invest £27 million in price cuts.
In the year ending 31 August, the home furnishings retailer also grew its market share by 0.5% to 7.1%.
Following a £4 million investment in 2013, IKEA’s children’s and living room departments continued to see growth in 2014, with sales rising by 17% and 11% respectively.
UK country retail manager Gillian Drakeford said: “We are delighted to report such positive growth here in the UK for the third year running. What is really encouraging is that this growth has come from our existing business, not relying on a bricks and mortar expansion programme.”
In February 2014, IKEA invested £8 million in launching its new kitchen system, METOD, which included rebuilding kitchen departments in all stores and training staff to deliver a new service to customers.
The company has also refreshed its bathroom and bedroom departments over the past year which it says has already resulted in respective sales increases of 21% and 10% compared to 2013.
IKEA said it has continued to see strong growth in online sales with a 26.8% sales uplift in 2014 following double digit growth the previous year.
Drakeford explained: “Our online business continues to be a driver of growth here in the UK and now makes up 10% of our overall sales. We are excited to see that this is not at the expense of our stores, in which we had a 5% increase in visitors over the past year.”
IKEA is continuing to explore expansion opportunities in the UK and has secured new locations in Reading, Greenwich, Exeter and Sheffield with additional sites under consideration.
Drakeford added: “This year we will invest £27 million to lower prices across our range, the largest investment into lowering prices we’ve ever made in a single year, as we continually look to provide home furnishings to as many people as possible, no matter how much money they have.”
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