Ikea rings up rising global sales amid group-wide revamp

Flat pack furniture giant Ikea has posted rising global sales despite an overhaul under one of the “biggest transformations” in its history.

Ikea’s global parent company Ingka said retail sales rose 5% to 36.7 billion euros (£32.5 billion) in the year to August 31 across its worldwide operations, including the UK and Ireland.

It said online sales enjoyed a bumper year, rising 46%, and now account for around 11% of total revenues.

The group said the performance was achieved despite upheaval as part of its revamp under which the group is slashing 7,500 jobs globally, including 350 in the UK.

But it is also creating 11,500 new jobs this year and next through new openings and investment in delivery and digital operations.

This includes 500 new jobs at the UK’s newest store in London’s Greenwich, which opened earlier this year.

Jesper Brodin, chief executive of Ikea parent Ingka Group, said: “We have had a really positive year.

“While going through one of the biggest transformations in our history, we’ve maintained strong performance across our business, thanks to all the amazing colleagues across the Ikea world.”

Ikea’s overhaul has also seen the group strengthen its home delivery network, accelerate investments in renewable energy and its online offering, such as a new app.

Its sales figures showed 839 million customers visited Ikea stores over the year, while visits to IKEA.com also increased by 10% to nearly 2.6 billion.

The group will provide a UK breakdown of sales figures in November, when it will also report back on full-year earnings.

Ikea has made a push into UK city centres over the past year, as it adapts to higher levels of renting in urban areas.

In London, Ikea now has an order point in Stratford and two planning studios in Soho and Bromley, as well as the new Greenwich site.

Worldwide, there are 30 markets within the Ingka group and 374 Ikea stores.

Read Full Story

FROM OUR PARTNERS