David McCabe, CEO and CSO IKEA UK & Ireland, writes that the UK’s advanced omnichannel landscape, appetite for experiential retail and role as a testbed for innovation make it one of the world’s most exciting retail markets.

In July, I returned to the UK to take on my new role as CEO and CSO of IKEA UK & Ireland.

It marked three decades since I first joined IKEA in 1996, as a part-time sales coworker in our Lakeside store in Essex, and five years since I left the country for leadership roles across Europe spanning expansion, commercial, logistics, innovation, and management.

Coming back to the UK was always the long-term goal. Having worked in retail across a number of different international markets, there is nowhere quite like the UK.

We’re unmatched in our drive to go further and faster, launching new retail capabilities and experiences that exceed customer expectations and start global trends. The energy is infectious, and there is a strong ambition to deliver our very best work.

One of the world’s most advanced omnichannel markets

Within IKEA, the UK is our most advanced omnichannel market in Europe. In FY25 our online share of sales was 43 per cent and we see that moving closer towards 45 per cent in FY26. In essence, our UK customers want the flexibility to shop with us in a way that fits in with their life, and we pride ourselves in providing a seamless experience across the many online and physical touchpoints we have with customers.

A customer might see an IKEA product they love when scrolling on Instagram. Then, they might visit their local IKEA store to see and feel the product in our showroom. Then, they might go home, find the product measurements on our website, and use the IKEA Kreativ app to visualise it in their home with the help of AR.

Finally, they might order the product online to a nearby Click & Collect location, where they can pick up their order on the way home from work. It’s simple and easy to switch between IKEA channels, and it gives our customers the flexibility to shop with us however suits them best. The UK isn’t an outlier in this regard; in our digital world, ensuring a seamless omnichannel experience is a priority for retailers worldwide, but the UK leads from the front.

Here, customer demand for an expanded range of delivery and Click & Collect options has given us a license to invest in upgrading our logistics capabilities, enabling us to get IKEA products to customers as efficiently as possible while reducing our environmental footprint. In 2023, we invested £4.5 million in a nationwide electrical charging infrastructure, in partnership with European charging company Mer, which powers our EV fleet with energy sourced entirely from renewables.

Today, 85 per cent of our UK deliveries – the overwhelming majority – are made using EVs and the UK is IKEA’s leading market for the volume of EV deliveries made.

A hub for experiential retail

While it’s true that online shopping is deeply engrained in our day to day lives in the UK, you would be mistaken to think this signals the end of the physical store. Online shopping has simply disrupted the way that customers engage with stores – and experience is now the priority.

In IKEA stores across the country, the shopping experience matters just as much as the products on offer. We know that going to IKEA is not simply about transactions – it’s something people look forward to, for many it’s a social occasion. But when you go on a day out to the shops, customers are seeking meaningful and memorable interactions with stores. That is why the UK is a prime testing ground for new experiential concepts.

Certainly, at IKEA, we have embraced opportunities to optimise space within our stores to enhance the shopping experience for our customers. Earlier this year, we installed a standalone Decathlon store within IKEA Croydon, with our store becoming a one-stop shopping destination for all lifestyle needs.

We also launched a Live Studio with broadcasting capabilities within our city centre store on London’s Oxford Street, in a global first for IKEA. The studio has hosted a number of interactive experiences including a national TV broadcast, engaging play areas and activities for children, sustainable living workshops and cultural events  – providing a space for the community to come together and connect.

The brick-and-mortar store is part of British heritage, with high streets and shopping centres sitting at the heart of our communities. And the unique interplay of this heritage with the retail industry’s drive to disrupt and push boundaries is endlessly exciting, and one of my favourite things about living and working in the UK.

A testbed for the latest and greatest in retail

All things considered, it’s no surprise that so many international retailers choose the UK for their flagship European stores, and to try out new retail concepts.

We did just that when we launched three new-format small stores in retail park locations in Harlow, Norwich and Chester last year, offering our customers the classic IKEA experience they know and love, on a smaller scale. Since launching in the UK, this small store format is now being rolled out in other markets including Poland, France and Germany.

Consumer demand in the UK drives retailers to push boundaries and innovate, and UK shoppers ultimately set global shopping trends. The rise of the circular economy in the UK is a perfect example, with the strong consumer demand for circularity here enabling us to go further and faster. A survey from the British Retail Consortium last year found that more people than ever are turning to second-hand products, and furniture saw the biggest growth in the second-hand market.

We have a clear mandate from customers to innovate in new circular solutions.

In 2021 IKEA answered with a dedicated BuyBack & Resell service in all our UK stores, a free spare parts service to help prolong the life of IKEA products. Spare parts are a critical part of our customer service approach, which prevents products from going to waste. In FY25, 517,970 were given to customers free of charge.

Last year, Ingka Investments, the investment arm of our parent company, Ingka Group, announced an investment of €1bn in companies at the forefront of recycling innovation, including The Furniture Recycling (TFR) Group in the UK, which recycles mattresses that would otherwise go to landfill.

There is so much more in the pipeline.

As I step foot into lead IKEA’s UK & Ireland team, I’m excited by the unrelenting drive from our co-workers to continue identifying and delivering new ways to meet the needs and dreams of our UK customers. I have no doubt that, alongside the rest of the UK retail industry, we’ll continue forging paths that markets around the world follow.

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