Ikea sees surge in UK sales after revamp of bedroom furniture range
Flat-pack furniture maker Ikea reported a surge in UK sales thanks to high shopper demand for a new range of mattresses and the ongoing appeal of its Swedish meatballs.
The group said total UK sales rose 11.3% to £1.57 billion in the year to August 31 as it also invested £27 million in lowering prices across its ranges.
It said mattress sales bounced 30% higher after it revamped its bedroom furniture range across all of its 18 British stores, launching UK standard bed, mattress and linen sizes.
Ikea also said food sales rose 11% in the year, helped by the move to sell Swedish food throughout stores, as well as demand for its popular meatballs and recently introduced veggie balls.
The group posted an 11% rise in worldwide annual sales to a record €31.9bn in September, with comparable store sales up 5.1%.
Britain accounts for around 6% of global sales and is the group’s fifth largest market.
It is launching a new store in Reading next summer – its first in the UK for seven years – while earmarking other locations in Sheffield, Greenwich in London and Exeter.
The group is also trialling a small retail format and opened its first order and collection point in Norwich earlier this month, with another on the cards for Aberdeen next spring.
UK retail manager Gillian Drakeford said: “While we have seen fantastic growth this year, we recognise we have still some steps to take in simplifying the shopping experience and meeting the expectations of UK consumers.
“In the next year and beyond, we will take some significant steps in our plan to make Ikea more accessible to many more people.”
Ikea became the first large national retailer earlier this year to commit to paying staff the incoming national living wage of £9.15 an hour in London and £7.85 across the UK from April.
