Ikea doubles its profits in the UK as sales surge to almost £2.5 billion

The UK operations of Swedish furniture giant Ikea more than doubled their profits to almost £111 million last year as online sales surged.

Latest accounts for Ikea UK show turnover grew 12% to £2.46 billion in the year to end August with in-store visits up 2.2%, remote online sales 24% higher and click and collect purchases up by half.

The company said it improved its margin from 2.3% to 4.5% boosting UK operating profits from just under £50 million to £110.7 million.

Peter Jelkeby, CEO and Chief Sustainability Officer, IKEA UK & Ireland, said: “In our 80th year, we can be proud of our performance. Last year was a year in which we improved our customer experience, grew our market share and continued making meaningful investments in our business and people.”

He added: “Having overcome challenges posed by Brexit and COVID, we have since focused on a creating a more efficient organization and improving our profitability, which gives us the financial strength to continue investing for generations to come. Despite a difficult economic climate, our focus remains on new locations, new store formats, and in new services.”

In a year end statement the company said: “As the cost-of-living crisis continued to impact customers, IKEA saw a clear pattern emerge. In response to economic strain, customers sought durable solutions that enhanced the dual role of the home as a sanctuary and a space for work and leisure activities.

“The importance of storage across the home was reflected in sales of IKEA’s highly adaptable PAX and KOMPLEMENT wardrobe systems, which increased 49% and 39% respectively, with the BESTÅ storage system growing by 25%.”

The company has 22 stores across the UK including full service shops in Wembley, Greenwich and Croydon and a smaller format city outlet in Hammersmith. A debut West End Ikea store is due to open in the Autumn.