Ikea UK profits have more than doubled thanks to its ongoing investment into value, which helped to boost sales despite what it termed a “difficult economic climate”.
The Swedish retail giant reported its operating profit had skyrocketed from £49.6m to £111.2m in the 52 weeks to 31 August, driven by its cost-efficiency strategy and strategic investments into its UK store estate and online.
Sales jumped 11.9% to £2.46bn, boosted by a 19% increase in online sales.
Click-and-collect sales skyrocketed 48%, which the retailer credited to its partnerships with Shift lockers and Tesco, which saw Ikea introduce mobile pick-up points in the supermarket’s car parks.
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The flatpack furniture giant said its BuyBack & Re-sell scheme was proving popular with customers, with 52,380 pieces of furniture traded and sold last year – up 187% year-on-year.
Ikea UK and Ireland CEO and chief sustainability officer Peter Jelkeby said: “FY23 was a year in which we improved our customer experience, grew our market share and continued making meaningful investments in our business and people.”
“Having overcome challenges posed by Brexit and Covid, we have since focused on a creating a more efficient organisation and improving our profitability, which gives us the financial strength to continue investing for generations to come.”
Jelkeby said the retailer had started the new year by lowering a “significant volume of prices, with more to come”.
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