Ikea has warned that higher costs may see it increase prices again, in the new year.
Profits fell from £61m to just under £50m in the year to 31 August, as it faced higher energy, supplier and freight costs.
This was despite sales increasing by 12% to £2.2bn: surpassing pre-pandemic levels for the first time.
Online sales dropped from 45% of turnover to 35% as lockdown restrictions were lifted.
‘We have to be competitive and affordable and we are working very hard on improving our offer,’ says Peter Jelkeby, Ikea UK country retail manager.
