Ikea has seen UK sales rise in recent months, but this was not enough to stop a full year sales drop.
Turnover fell by 2.1% to £2.25bn (£2.3bn) in the year to the end of August. Sales volumes grew by 4%.
Sales in the final quarter rose by 3.3% and the group says growth continued in September.
Bedrooms and kitchens saw growth of 2.7% and 1.8% respectively.
Profits were not disclosed.
Following a £117m investment in price reductions during FY24, the company accelerated its expansion in FY25 with four new store openings in the final quarter and the addition of 101 Collect Near You points. These initiatives contributed to a 4% increase in sales volumes year-on-year.
Where stores have opened, online sales have risen. Online sales grew by 2% in FY25, accounting for 43% of total sales compared with 41% in FY24. Enhanced delivery capabilities through its distribution centre in Dartford and in-store fulfilment; the expansion of collection points for online orders; and investments in lowering delivery prices for loyalty scheme members helped drive the increase.
‘In a challenging environment marked by economic and trade uncertainties, rising cost-of-living pressures and weakened consumer confidence, I am proud that we continued our programme of strategic investments in the UK to build a more affordable, accessible and sustainable Ikea. We saw these investments begin to pay off in the final months of FY25 and now into FY26, which gives us confidence for the year ahead,” said Peter Jelkeby, Ikea UK ceo.
Its Oxford Street, London store generated 1.34million visits in its first four months.
‘Our network of stores is hugely important, not only as a point of purchase but as a source of inspiration for customers, with our famous showrooms tailor-made for local communities. Last year was a landmark year for expansion, with four new stores and two Plan and Order Points, and we’re seeing an exceptional response to these units. As well as strong footfall, there has been an increase to online sales in the new areas we’ve launched, showing a clear desire for our brand and range.
‘While our strategic investments in affordability and accessibility are delivering strong results, we’re trading in a difficult economic environment. Simple, targeted support from Government, like easing the burden of business rates would make a tangible difference, encouraging retailers to continue investing, saving existing jobs and creating new ones and serving communities across the country.’
