IKEA UK Reports 8% Sales Boost As Transformation Plan Takes Effect

Home furnishings retailer, IKEA, has announced total sales of £2.120 billion in the UK for the financial year ending 31 August 2019* (FY19), an uplift of +8% on last year. 

IKEA UK continues to outperform the market in home furnishings, increasing its market share to 9% (+0.6% on last year). In addition to the retailer’s continued focus on providing quality products at affordable prices, FY19 marked the first year of IKEA’s global transformation, which aims to create a new IKEA by 2021 that is affordable, convenient and truly people and planet positive. 

Investment in digitalisation has proven particularly successful, with an increase of +27% in online sales and visitation of 224 million, reiterating that people now expect a seamless and inspiring experience, both online and in-store. 

Peter Jelkeby, IKEA Country Retail Manager for UK and Ireland said: “Despite a challenging retail environment, IKEA has seen another year of strong sales growth as we continue the transformation of our business. We know that people’s  shopping habits and expectations are changing, so continued investments in our shopping experience, our people and in adapting our operations to ensure we become a fully circular business by 2030, will be vital to secure the success of our business in the future.” 

An Evolving Shopping Experience

IKEA UK has continued to innovate and invest in existing stores and new shop formats, to make products even more accessible; opening IKEA Greenwich and two new planning studios in London. 

Significant investment has also been made in the online shopping experience; from the continued development of a vitual reality app, which helps customers to visualise what IKEA furniture will look like in their homes, to the IKEA Store app that helps to make the physical shopping experience easier than ever before. 

IKEA has also continued to drive improvement of its distribution and fulfilment network. Home delivery has been a big focus with two new Customer Delivery Centres opening in London, as the retailer works towards a 24-hour delivery in London and within two days across the rest of the UK by the end of 2019. 

Leading the way in sustainable retailing

FY19 proved to be a standout year for sustainability with the opening of IKEA UK’s first ever leading sustainable store in Greenwich. The store was designed and built to the highest sustainability rating (and subsequently awarded BREEAM certified outstanding), with technologies including solar power, LED lighting, rainwater harvesting and a geothermal system which provides 80% of the heating and hot water. As well as being fully integrated within its local community, creating a hub for those who live, work, meet and shop in the local area. 

Across the whole business, single-use plastic straws were eradicated from restaurants and bistros, with 98% of packaging now renewable, recyclable or recycled, with the aim of being 100% by 2020. 

Co-workers at the heart of business transformation

FY19 saw IKEA UK continue to focus on diversity and inclusion amongst its 11,181 co-workers. Gender parity across all areas of the business remains a priority, with the ambition to balance the leadership team by 2020. 

In addition, the retailer’s nationwide visibility at local Pride events and all stores flying the rainbow flag during the International Day Against Homophobia, Biphobia and Transphobia (IDAHOBT) was an important way of showing the value and importance of diversity within the business and the wider retail industry. 

Upskilling co-workers was another key focus, with the retailer also expanding and formalising it’s Apprenticeship Programme in FY19, providing more co-workers the opportunity to develop new skills, reinforcing its commitment to invest in all its people.

Source : Insight DIY Team and IKEA

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