// Ikea sales grew to €36.7bn for the 2019 financial year 2019, compared to €34.8bn last year
// This represents a 5% year-on-year increase as parent company Ingka continues transformation
// Other highlights include new inner-city stores, improved delivery, and accelerated investments in renewable energy & digital
Ikea has seen an uptick in annual global sales despite a year that saw it dive into a major business transformation, which included new store openings and increased investments.
According to parent company Ingka Group, Ikea’s global retail sales grew to €36.7 billion (£32.24 billion) for the 2019 financial year 2019, compared to €34.8 billion last year.
This equated to a five per cent year-on-year increase, at constant currency rate.
It also follows a number of investments this year, including the launch of new Ikea stores in cities, strengthening the home delivery network, and accelerating investments in renewable energy and digital development.
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Ingka said customer visits to Ikea stores remained at a strong level of 839 million, while visits to the Swedish furniture giant’s website increased by 10 per cent to nearly 2.6 billion.
In addition, online sales grew by 46 per cent year-on-year, amounting to about 11 per cent of total sales.
Over the year, Ikea opened seven traditional big-box format stores around the world, one of which is the Greenwich outlet in south-east London.
It also opened 11 smaller Ikea stores and planning studios in major cities, two of which Tottenham Court Road and Bromley in London.
“While going through one of the biggest transformations in our history, we’ve maintained strong performance across our business,” Ingka chief executive Jesper Bodin said.
Plans are underway for new stores in Copenhagen, Shanghai and Tokyo, and Ingka has launched a new Ikea app to enhance its ecommerce offering.
Meanwhile, Ingka has accelerated its investments in renewable energy and will generate as much renewable energy as it consumes in its operations, exceeding its 2020 target.
It also recently announced that the country retail managers will take on the role of CSO, country chief sustainability officer, in each of their respective markets.
They will lead Ikea’s activity on critical topics, such as sustainable living, renewable energy and equality, across 30 countries.
“We need to grow in a responsible way and are going further and faster in demonstrating business success through long-term sustainable growth,” Brodin said.
“It is our generations’ biggest responsibility and we know that our future success depends on our ability to make a positive impact on people and the planet, which is why we are integrating sustainability into every aspect of our retail operations.”
Inter Ikea Systems BV, which is the owner of the Ikea concept and the worldwide Ikea franchiser, also announced today total Ikea retail sales of €41.3 billion across all 11 franchisees.