Swedish furniture retailer IKEA has announced a strong sales performance, with the first four months of the financial year delivering an impressive growth on like for like sales.
The company’s latest financial results have seen a record breaking sales performance for the company during the post-Christmas period, as the first four months of the 2015 financial year have seen a total growth of 11.1%. Following a recent announcement of 11.3% growth in 2014, the company is now on track for its fourth consecutive year of growth. Store sales during this period increased by 8.8% in-store and 33.5% online.
Despite the seasonal, snowy weather in some areas of the country as well as fewer public holidays compared to the previous year, IKEA’s sales have been undeterred. The retailer’s overall growth over Christmas resulted in 5.5% sales increase overall, including 4% in-store and 13.5% online.
IKEA’s growth equally follows its investment to lower prices of many products throughout its range to ensure greater accessibility for customers, offering greater convenience and value to its already renowned shopping experience.
The most successful product overall during this period was the Friheten corner sofa-bed, which saw a huge 132% increase in sales and a price drop from £450 to £395. Success has been particularly focused in the bedroom department, with like for like sales on mattresses equally increasing by 40.6% since September 1st. This is potentially due to the company’s introduction of UK bed and mattress sizes to the entire range.
Other departments have also witnessed great success, with bathroom sales up 18.9%, kitchen and dining up 9.4% and living room furniture seeing a 9.1% sales growth for the 2015 financial year. During an ever-popular shopping time, as January’s infamous sales kick-start the New Year, IKEA’s necessary storage and everyday necessities have proven no exception.
UK and Ireland Country Manager Gillian Drakeford described IKEA’s excellent strong start to the year as extremely encouraging, particularly because “this growth has come from our existing business, not relying on a bricks and mortar expansion programme.”
With intentions to further improve its multichannel offerings, IKEA are looking to release a number of beneficial updates in the coming year. The company’s next instalment to its ‘The Wonderful Everyday’ campaign, ‘The Joy of Storage’, has also now been launched. This stage of the campaign promotes the idea that storage is no longer a functional necessity, but rather an opportunity for stylish storage solutions that meet your everyday needs, and the great feeling that comes with it.
IKEA UK reported total sales for the year to 31 August 2014 of £1.411bn, and now shows no sign of slowing down for the year ahead.