Ikea has posted strong sales growth and promised to reduce prices in the next financial year.
The home and furniture giant posted a sales increase of 11.9% to £2.46bn for the 2023 financial year, while sales at the wider Ingka Group reached €41.7bn (£36bn), up 5.7% on €39.5bn (£34bn) in FY22.
Ikea also announced its intention to reduce its prices next year as supply chain costs begin to lower.
The retailer said the result marked a significant investment in sales channels, digital solutions and logistics, including a new distribution centre powered by renewable energy and three more small-format Plan & Order stores in the northwest.
Its ecommerce operation also grew, with online sales now accounting for 38.5% of the business, up from 35.8% last year, and remote sales (made online or over the phone) growing 24% year on year.
New store visits grew to 1 million during the year, up 2.2% on FY22.
Benefiting from shoppers making affordable improvements to their homes during the cost-of-living crisis, sales of Ikea’s People & Planet Positive range, which aims to reduce costs and minimise waste, rose by more than 40%.
Ikea UK and Ireland chief executive and chief sustainability officer Peter Jelkeby said: “Over the past 80 years, we have developed our offering, value chain and sales channels, supporting our vision to create a better everyday life for the many people.
“As we look back on the last year and forward to the next 80, we constantly ask ourselves how what we do today can be done better tomorrow. Over the past year, we have made significant investments on this journey to create a more accessible, affordable and sustainable Ikea, to meet the evolving needs of UK households.
“Despite economic and geopolitical instabilities, we remain committed to making a positive difference in our customers’ lives, especially for those with the thinnest wallets.
“Knowing that our customers continue to navigate a cost-of-living crisis, we absorbed significant cost increases to mitigate price rises as much as possible, investing in promotions, special offers and, for the first time, an Easter Sale.
“As we see supply chain costs start to ease, we have a clear commitment to lowering prices accordingly – ensuring we remain firmly on the side of the many people.”
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