Banking on beds pays off for Ikea UK as annual sales rise to £1.6bn and market share grows to 7.7 per cent
Retailer Ikea has remained popular on British shores, with Ikea UK today revealing annual sales of £1.6bn for the financial year ended 31 August 2015, up 11 per cent.
“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,” said Gillian Drakeford, Ikea UK country retail manager. “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.”
The retailer, which also saw its market share grow by 0.5 per cent to 7.7 per cent, focused on bedrooms for its financial year 2015, refurbishing the relevant departments in all of its UK stores and being rewarded with a 15 per cent increase in bedroom furniture sales. In particular, mattress sales rose by 30 per cent.
Next financial year will see Ikea UK concentrating on cooking and eating, having recently introduced a veggie version of its famous meatballs.
In July this year, the home furnishings giant announced that it would be paying its staff the Living Wage, which is set by the Living Wage Foundation at £9.40 for London and £8.25 outside of the capital, from April next year.
Drakeford added: “We believe our people are the inner strength of our company, so it is only right to ensure we provide a meaningful wage that supports the cost of living. The Living Wage is not only the right thing to do for our co-workers, but it also makes good business sense. This is a long-term investment in our people based on our values and our belief that a team with good compensation and working conditions is in a position to provide a great experience to our customers.”
A new Ikea store is set to be opened in Reading in summer 2016, the first new traditional Ikea store to be built in seven years, and further sites have been secured in Sheffield, Greenwich and Exeter.