Here we go then – another retailer reports its numbers, another slump blamed on adverse conditions on the UK’s high streets?
Actually, the Swedish furniture seller has announced total sales of £2.12bn in the UK for the financial year ending 31 August, an uplift of 8 per cent on last year’s figures.
How did it put together these sales?
Ikea admits that sales growth has been driven by online, with a 27 per cent hike in purchases recorded over 224 million visits to its website in the last year. The Scandinavian firm now holds 9 per cent of the UK’s home furnishings market.
So how has it bucked the gloom?
According to the company, investing in online has been paramount, as customers expect “a seamless and inspiring experience, both online and in-store”. The firm’s VR app lets customers see potential purchases in their living room, while a focus on quicker home delivery and new “planning stores” are helping customers see products sooner.
What are customers into?
Several trends have emerged: first, people more spending on things like blackout curtains and ergonomic pillows to ensure a good night’s sleep, perhaps as part of the wider wellness trend.
Other consistent sellers include collapsible storage, as inspired by the decluttering trend, and environmentally-friendly products like reusable water bottles and lunchboxes for leftovers.
Interestingly enough for a self-assembly furniture seller, Ikea says that there is a dying appetite for DIY, with a 58 per cent reduction in requests for its assembly service, and higher sales for its non-drill furniture and picture hooks.
And beyond retail?
Ikea has also focused on internal sustainability this year, making 98 per cent of its packaging renewable, recyclable or recycled. It has also prioritised diversity and inclusion practices among its 11,000-strong workforce, which is nearly 50-50 female-to-male overall; this only drops to 53-47 in senior management.
Elsewhere, the company has been prioritising its co-workers’ employability, expanding and formalising it’s Apprenticeship Programme last year.
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What are its bosses saying?
Peter Jelkeby, IKEA Country Retail Manager for UK and Ireland said: “Despite a challenging retail environment, IKEA has seen another year of strong sales growth as we continue the transformation of our business.
“We know that people’s shopping habits and expectations are changing, so continued investments in our shopping experience, our people and in adapting our operations to ensure we become a fully circular business by 2030, will be vital to secure the success of our business in the future.”