Thursday 7 November 2019 1:48 pm

Ikea shrugs off retail gloom to post sales rise

Ikea reported an increase in full-year sales as it managed to overcome the challenges facing the UK retail market. 

Sales in Ikea’s UK business were up eight per cent year on year to £2.1bn, the retailer said in its annual report. 

Read more: Ikea to face tax repayment order from EU

The company reported that its share of the UK home furnishings market increased to nine per cent, up from 8.4 per cent. 

Meanwhile, the company suffered a 2.8 per cent dip in footfall at its 22 UK branches as customer habits moved away from shopping at large out-of town stores. 

In response to adapting behaviour, the Swedish retailer has begun to introduce new store formats in city centres and is improving its delivery offering. The latest Ikea Planning Studio opened in Bromley High Street this year. 

By the end of 2019 the company is aiming to have 24-hour delivery in London and a maximum of two days for the rest of the country. 

Online sales increased 27 per cent in the year and now account for 19 per cent of total sales compared to 15.5 per cent last year after the company reported 224m visits to its website. 

Read more: Online retail acquisitions rise with high streets in decline

“I am confident that despite the uncertainty of the retail environment our unique formula of home furnishing expertise, in-depth knowledge of life at home and commitment to affordability, alongside our inspiring community of co-workers, will see us exceed customer expectations and support more people to live a better everyday life, within the limits of the planet,” Peter Jelkeby, UK and Ireland country retail manager, said. 

Main image credit: Getty