IKEA UK Announces Retail Sales Of £2.3bn

IKEA UK today [10th October] announced retail sales of £2.3 billion for the financial year 2024, a 6.8% decrease compared to the previous year (£2.46 bn). The company attributes this performance to its strategic decision to prioritise affordability, investing more than £117 million in lowering prices.

The price reductions focused on some of IKEA's most popular items. In total, 3,481 products1, approximately 33% of the range, were reduced, offering customers an average price reduction of 20% on these items.

“In a year of economic uncertainty, our priority was clear: stand with our customers. In spite of our reduced turnover, continuing to lower prices remains our long-term priority. This is true to the IKEA vision.” Peter Jelkeby, CEO and Chief Sustainability Officer, IKEA UK.

Despite the impact on FY24 revenue, IKEA UK saw an uptick in demand as the year progressed and as more new lower prices were introduced, particularly in key categories like kitchens, bedrooms, and storage solutions.

As well as its focus on lowering the price of products, IKEA has lowered service-related prices. Throughout the year, the retailer introduced more affordable delivery options, such as reduced furniture delivery pricing and an increased offer of free click-and-collect services2. Furthermore, IKEA continues to offer free in-store and online planning services, such as for kitchens, bedrooms, and living room storage, helping customers to plan and optimise their spaces.

With consumers looking for smart ways to save money, IKEA has seen continued success with its Buyback scheme, rewarding customers with an in-store credit. In FY24, a total of 52,600 products were bought back, demonstrating the popularity of this part of IKEA's plans to enable a more circular economy.

Continued investment to create a more accessible IKEA UK

Despite economic challenges, IKEA UK is investing significantly to become more accessible. Progress includes the upcoming 2025 openings of two new City Stores, on Oxford Street in London, and in central Brighton, each over 50,000 sq ft, bringing IKEA closer to its customers. Additionally, IKEA plans to open over five Plan and Order Points, offering free, bespoke kitchen and bedroom design consultations. As part of this improved customer experience, IKEA launched over 100 mobile pick-up points at Tesco stores, delivering nearly 225,000 orders this year.

“We continue to dedicate our energy to our UK expansion plans and investing heavily to become more accessible. To complement our existing stores, we are laser-focused on continuing to innovate to reach more customers, with a network of new, smaller stores that offer different experiences, as well as new services that meet all of our customers’ needs – no matter where they live.” Peter Jelkeby.

Online sales continue to grow

The retailer saw the trend of growing online sales continue, with 41.7% of IKEA UK’s sales made online in FY24 (up from 38.5% in FY23). In London, every second order is now coming through its e-commerce business, with share of online sales reaching 51.4% in FY24.

A key contributor to this increase was the retailer's newly opened distribution centre in Dartford, which processed nearly half a million orders for customers in London and the South East. In addition to enhancing delivery capabilities, the new distribution centre has become a springboard for greener deliveries. IKEA UK achieved a 40% increase in zero-emission deliveries, now standing at 90% in London and 65% nationwide. This progress is powered by strategic investments in EV infrastructure, including a fleet of 270 electric vans and 16-tonne trucks that deliver nearly 3,500 orders daily across the UK.

“We want it to be as easy, affordable, and sustainable as possible for customers to shop with IKEA, whether they choose to do so in our IKEA stores, online, through our app, or with personal assistance from their home, and we are making strategic investments with this goal in mind. In the past year, we have widened the range of services on offer to customers, and it is now easier than ever to furnish your home with our fantastic product range wherever you are.” Peter Jelkeby in summary of the year’s movements.

Similar global picture

Ingka Group, the largest IKEA franchisor, which includes IKEA UK, today announced total IKEA retail sales of €39.6 billion (£33.2 bn) a decrease of 5% compared to last year. Globally, IKEA also prioritised lowering the prices to customers by investing more than €2.1 billion (£1.8 bn) across thousands of products across all markets. During the year, Ingka Group continued to deepen its market presence and reach more people by investing over €1.3 billion (£1.1 bn) in revamping existing stores, expansion, and digital development.

The IKEA ambition is to deliver to the Paris Agreement and become net zero by reducing absolute greenhouse gas emissions from the entire value chain up and downstream by at least 50% by 2030 and 90% by 2050. The company has accelerated its investments into renewable energy and aims to invest €7.5 billion (£6.3 bn) until 2030, where more than €4.2 billion (£3.5 bn) has already been invested or committed to accelerating the transition to a net-zero society.

Source : IKEA

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