Ikea has another cause for celebration other than its 30th anniversary in the UK this year, with the homewares and furniture retailer recording its sixth consecutive year of growth in its latest full year report.
For the fiscal year ending August 31 Ikea UK raked in total sales of £1.814 billion, a 57 per cent increase over the last six years and a 5.8 per cent uplift compared to the same period last year.
In addition, the Swedish retail giant increased its market share by 0.5 per cent, as it progresses towards its ambition of increasing its overall market share to 15 per cent by 2027.
“As we celebrate our 30th anniversary this year, we remain committed to the UK and are proud to have achieved another successful year of growth,” Ikea UK country manager Gillian Drakeford said.
“This is testament to the talent of our co-workers and our ambition to inspire customers with the best possible experience.”
Ikea opened two new stores in Reading and Sheffield during the year, with plans for a further two to open in Exeter and Greenwich in the current year.
The retailer’s new ecommerce website has also paid off, with online sales increasing 10 per cent. Online now accounts for 15 per cent of Ikea UK’s total sales.
“We have ambitious expansion plans for the UK and are committed to making Ikea more accessible to the many people,” Drakeford said.
“As well as opening new stores, we are also enhancing existing stores. Half way through the year we refurbished all living room departments in preparation for this year’s ‘Make Room for Life’ campaign and we are already seeing a great response to this.
“We also rebuilt many of our self-serve areas by creating wider aisles so that it’s a safer and more pleasant shopping experience for customers.
“We have also expanded our service proposition, providing our customers with more choice and convenience. In addition to our global acquisition of TaskRabbit, we also launched click-and-collect in all order and collection points.”
Ikea has also made investments in the development of its staff, totalling £4 million throughout the recent fiscal year.
The retailer created 1000 new jobs, bringing its total number of employees to 10,900.
By the end of the current fiscal year, Ikea UK said it aimed employ to a further 850 people through its new Exeter and Greenwich stores.
Ikea UK also committed to a second year of paying all employees a meaningful wage at the current rate set out by the Living Wage Foundation.
“We were the first Ikea market to implement the global Ikea Employment Standards, aimed at improving co-workers work/life balance,” Drakeford said.
“This includes the introduction of one weekend off in four for all co-workers, even if they are part-time, and providing rotas at least four weeks in advance.
“By putting people at the heart of our business, we can create an even better experience for our customers.”
She added: “We’re thrilled to have achieved these results while investing in our people, contributing positively to the UK society and making Ikea more accessible.
“Looking ahead, we remain committed to our vision to create a better everyday life for the many people.”