Ikea UK has announced YoY sales growth of +5.9% (to £1.965b), and an increase in home furnishings market share to 8.4%.
The results, covering the financial year ended 31st August 2018, were delivered with the help of digital investment services and physical stores. Two new stores were opened during the period – in Exeter and Sheffield – bringing the total number of large Ikea stores in the UK to 21.
Javier Quiñones, country retail manager at Ikea UK, says: “FY18 has been a positive year for Ikea in the UK and we know that our products remain a key growth driver. With our vision to create a better everyday life for the many people, we continue to invest in a range that’s affordable, accessible and inspirational.
"In a tough economic environment, our homes provide a sanctuary and we know that consumers continue to update them with soft furnishings, textiles and decorations, resulting in an increase of +9% in Home Decoration. Two years ago, we refurbished the Living Room department in all stores and we are still seeing strong growth off the back of this, with Living Room Seating +8% on last year.”
Ikea is set to open a store in Greenwich in the spring, and has announced the opening of its Planning Studio on Tottenham Court Road, the first step in its new city centre approach.
It also invested heavily in its distribution and fulfilment network with two new Customer Delivery Centres and a Parcel Unit opening in London.
Ikea saw an increase of +4.5% in-store footfall, and +13.4% in online visits. Online sales grew by +14.4% and now represent 15.5% of Ikea UK's total sales.
Javier adds: “Our stores will always be an important part of the Ikea brand when it comes to inspiration, touching and feeling our products and this is reflected in the increase in visitation of +4.5% on last year. In FY18 we continued to invest in our existing stores including the total refurbishment of Ikea Nottingham, it’s just like new. We also revamped the textiles department in Milton Keynes, giving more space for customers and co-workers to co-create together.
“However, we know that the role of the store is changing. People want to shop in a number of different ways and count on brands to offer them services that reflect the way they live. That’s why we are focused on providing a seamless shopping experience and want to give our customers the choices they expect, no matter how they choose to shop with us.”
The retailer also revealed progress in its worker development programmes and commitments to sustainable policies.