IKEA UK sales figures reveal continued growth
Today, home furnishings retailer IKEA announces total sales of £1.965 billion in the UK for the financial year ending 31 August 2018* (FY18), an uplift of+5.9% on the previous year.
- IKEA UK today announces total annual sales of £1.965 billion (+5.9% uplift)
- The retailer increased its market leading position in home-furnishings to 8.4% (+0.4%)
- Highlights include the opening of two new stores in Exeter and Sheffield, bringing the total number of large IKEA stores in the UK to 21
IKEA UK continues to outperform the market in home furnishings, increasing its market share to 8.4% (+0.4% on last year). Investment in IKEA’s digital offer, services and physical stores, alongside its affordable and inspirational product range, have all contributed to this year-on-year growth.
Javier Quiñones, Country Retail Manager at IKEA UK, said: “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.”
Investing in convenience
A greater emphasis on accessibility, convenience and enhanced services are all key contributors to IKEA’s continued growth in the UK. In FY18, the retailer opened two new stores in Sheffield and Exeter and is set to open IKEA Greenwich in spring 2019. IKEA also announced the opening of its Planning Studio on Tottenham Court Road, the first step in its city centre approach, starting with London.
As well as the opening of new stores, IKEA invested heavily in its distribution and fulfilment network with two new Customer Delivery Centres and a Parcel Unit opening in London, resulting in reduced delivery lead times and an increase of +65.9% in parcel deliveries.
Visitation continues to grow both in-stores and online with 59.8 million visitors to IKEA stores across the UK in FY18, an increase of +4.5% and 199.3 million visits to our website (+13.4%). Online sales grew by +14.4% and now represent 15.5% of 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.”
Caring for people
During FY18, IKEA UK continued to prioritise the personal and professional development of its co-workers. Key highlights include the roll-out of a new Apprenticeship Programme across all stores and investment in current and future leaders.
Carin Hammer Blakebrough, People & Culture Manager at IKEA UK said: “Our co-workers are at the heart of IKEA and are vital to our growth. As we evolve our business to better meet our customers’ needs, we remain committed to equipping co-workers with the right tools and skills to continue supporting them.”
In FY18, IKEA continued its effort to create an inclusive working environment, in line with the company’s culture and values.
Carin adds: “We believe diversity drives success and we celebrate the individuality of our co-workers. We will continue to nurture a business where people can truly be themselves and we have made great progress this year, including a new partnership with Stonewall and the release of our first Gender Pay Gap report. The report demonstrated that we are well ahead of the industry average, although there is still work to be done to address the reasons for our gap and how best to close it.”
Social and environmental impact
IKEA is committed to having a positive impact on the planet and is focused on inspiring and enabling customers to live a healthier and more sustainable life at home. This year, IKEA updated its People and Planet Positive strategy outlining its sustainability commitments by 2030, with a focus on becoming a circular business, preventing waste at source, tackling climate change and championing human rights.
In FY18, more than 5,000 customers switched to a renewable electricity tariff through a partnership with Big Clean Switch. IKEA also announced its commitment to eliminate single-use plastics in its range, Restaurants and Bistros by 2020, starting with the removal of single-use plastic straws across the UK & Ireland in October 2018.
Hege Sæbjørnsen, Country Sustainability Manager at IKEA UK said: “Our commitment to sustainability goes beyond minimising the impact of our own operations to having a positive impact on the world around us. We want to provide services to extend the lives of our products and turn waste into a resource whilst focusing on transforming into a circular IKEA. Being a truly sustainable business is about more than just doing good. It is a huge opportunity and a crucial factor in achieving our vision to create a better everyday life for the many people.”
Javier concludes: “Whilst we’re pleased with our performance, we recognise that a challenging retail and economic environment means we need to continue to respond to our customers’ needs and invest in an IKEA that is here for people, whenever and wherever they need us. We want to enable people to shop with us on their own terms and are committed to being a responsible business that has a positive impact on people and the planet.”
This announcement is part of IKEA UK’s Annual Summary report which highlights the retailer’s continued efforts to better meet customers’ needs and lifestyles, whilst having a positive impact on people and the planet. Find out more here https://www.ikea.com/gb/en/this-is-ikea/about-the-ikea-group/
