Online sales help Ikea UK sales to soar to £1.27 bn
25 Nov 2013
Ikea has gained a firmer grip on UK households with increased sales and market share, boosted by online shopping, according to the Swedish group.
Sales were up 3.1 per cent to £1.27 billion for the financial year to August, with a 29 per cent jump in online sales, which saw the world's biggest home furnishings store reach new demographics. The company last year increased to around 80 per cent, the range of products available online, and spread its home deliveries for covering most regions of the UK.
In its 25th anniversary year in the UK, Ikea expanded its leading market share in home furnishings by 0.2 per cent to 6.4 per cent. The sales figures reflected similar rises across the global group, where revenues hit €27.9 billion across 26 countries.
The Guardian newspaper quoted Gillian Drakeford, Ikea's UK retail manager, as saying that with the continued uncertainty around the recovery from the recession, Ikea had continued to invest across its online and in-store shopping channels to create a simpler, more convenient and enjoyable experience and it was very humbling that its efforts had resulted in another year of growth.
The biggest leap in sales was seen in outdoor furniture that saw sales rise 58 per cent, with stores now offering the product range throughout the year despite the uncertain seasons. Lighting sales were also up on a push towards LED bulbs.
Outdoor furniture sales during the height of winter turned out to be the top performer for Ikea after it started selling traditional summer items.
The company had started selling traditional summer items throughout the year.
The retailer, famous for its cut price flat-packed products, changed the way it sold garden furniture and revamped its stores, pushing UK sales up 3.1 per cent to £1.2 billion for the year to 31 August.
The stand-out performance comes at a time when consumers were cutting spending on all but essential items and the housing market continued to be depressed.
According to the firm, it had grown market share by 0.2 per cent to 6.4 per cent with its focus on value lines and creating better in store displays.
The company spent £4 million on recreation of its living room as also children's department which, it said, resulted in an immediate return on investment as sales in both areas increased by 6 per cent.
Mail Online quoted Drakeford as saying that over the coming year, Ikea would be putting a renewed focus on its kitchens business, making IKEA the most simple and convenient retailer to buy a kitchen from.
