Ikea UK FY sales fall 2.1% to £2.25bn despite strong final quarter

Ikea UK has reported retail sales of £2.25bn for the 2025 financial year, a 2.1% decrease on the previous year’s £2.30bn.

The retailer said the performance comes despite seeing sales strengthen in the final quarter, rising 3.3%, with the trend continuing into September 2025.

Ikea added that amid limited national economic growth, high interest rates and rising living costs, which it labelled as “key constraints for the home furnishings market”, Ikea maintained a stable market share.

Meanwhile, online sales grew by 2% in FY25, accounting for 43% of total sales compared with 41% in the previous year. The company said improved delivery capacity through its Dartford distribution centre, more in-store fulfilment, additional collection points and reduced delivery prices for Ikea Family members supported the increase.

During the period, Ikea accelerated expansion plans, opening four new stores in the final quarter and adding 101 Collect Near You points. It said these initiatives helped lift sales volumes by 4% year-on-year.

In addition, Ikea opened two new city centre stores in London’s Oxford Street and Brighton’s Churchill Square Shopping Centre, with the Oxford Street branch recording 1.34m visits in its first four months.

The retailer also opened two small-format stores in Harlow and Norwich during FY25, with a third in Chester following at the start of FY26. The format, located in retail parks, is designed to offer a faster, simplified shopping experience.

Chief executive and chief sustainability officer Peter Jelkeby said: “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.”