Ikea plans to double market share by 2020 as sales rise 3.1%

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Sales at Ikea UK grew 3.1% to £1.27bn in the year to August 31, 2013 as the furniture giant gears up to double turnover and market share by 2020.

The furniture retailer said market share grew by 0.2% to 6.4% in a year when the Swedish behemoth also celebrated its 25^th birthday. Online sales grew 29% and a mobile site was launched towards the end of the year, as the business invested time and energy in its multichannel offer.

Ikea UK retail manager Gillian Drakeford said the outlook for the sector is positive: “The medium-term picture for the home furnishing market looks bright and I believe this, coupled with our investments to improve the shopping experience, gives us the opportunity to double our turnover and total market share by 2020.”

Drakeford said the retailer has continued to invest in multichannel and improve the in-store experience. “With the continued uncertainty around the recovery from the recession, we have continued to invest across our online and in-store shopping channels to create a simpler, more convenient and enjoyable experience.”

Ikea has increased the number of products available to buy online to 7,500, 80% of the total range, and has launched online shopping in the majority of Scotland.

A transactional mobile site and free in-store wi-fi were both launched towards the end of the year.

£4m was invested in rebuilding its living room and children’s departments, resulting in sales in both areas rising by 6%.

Drakeford said: “We have worked hard to put a renewed focus on the customer over the past year, understanding how they live, their needs, dreams and wants in the home as well as learning about how they want to shop with us.”

She added £8m will be invested in the coming year in the kitchen departments, and said multichannel will continue to be an area of investment focus.

In addition, the retailer will increase its range of energy efficient products. Drakeford said: “We have a real passion and desire to be the stand-out brand that enables consumers to live a more sustainable life in their home. Therefore we will be investing to promote the extensive range of products we sell that will enable them to save and generate energy, save water and reduce waste and will ultimately help them save money.”