Ikea sales rise as global transformation takes hold

The homewares giant reported total sales of £2.1bn in the UK for the financial year ending August 31, 2019, an 8% increase on the previous year’s figures.

The retailer said its investment in digital had also “proven particularly successful” and reported a 27% increase in online sales with some 224 million visits to its site during the year.

Ikea said it continued to “outperform the market in home furnishings” as it increased its overall market share in the UK to 9%, a 0.6% increase.

The homewares retailer said that the time period marked the first year of its global transformation, which aims to “create a new Ikea by 2021 that is affordable, convenient and truly people and planet positive”.

Country retail manager for the UK and Ireland Peter Jelkeby said: “Despite a challenging retail environment, Ikea has seen another year of strong sales growth as we continue the transformation of our business.

“We know that people’s shopping habits and expectations are changing, so continued investments in our shopping experience, our people and in adapting our operations to ensure we become a fully circular business by 2030 will be vital to secure the success of our business in the future.”

Ikea also flagged what it called a “standout year” for sustainability, in which it opened its first sustainable store in Greenwich, and two new store formats in London.

It also eliminated single-use plastic straws from its restaurants and bistros and said 98% of packaging is now “renewable, recyclable or recycled”, with the aim to make that 100% by 2020.