Ikea UK profits fall by nearly a fifth despite £2.2bn in sales

Ikea UK has announced that its profits have fallen nearly a fifth to £49.6m, despite posting sales of £2.2bn for the full year ended 31 August 2022.

The company’s total online sales grew to 36% compared to 19% in 2019. Consumers also returned to stores, with store visitation increasing by 34% compared to FY21.

Ikea opened its first small store in Hammersmith and announced plans to open a flagship on Oxford Street.

It is also planning to invest £33m in a new fulfilment centre in Dartford, Kent which the company believes will increase fulfilment capacity in London by 20%.

Ikea has also launched a collection service with Tesco. Seven sites have already been opened with plans to open a further three in the South East.

Peter Jelkeby, country retail manager and chief sustainability officer, IKEA UK said: “We saw consumers returning to our stores while online sales remained strong with high demand for a convenient shopping experience.

“To meet these needs, we opened our first small store on the high street, created new ways to meet customers remotely and in-store, and launched new ways to deliver orders. With a variety of stores, service offers and digital solutions that complement each other, our aim is to be there for our customers, however they want to meet us.”

Jelkeby added: “A post-pandemic backdrop of increased living costs, supply chain challenges and macro-economic instability inevitably shaped our business in 2022.

“In the face of these changes, our long-term vision to create a better everyday life for the many people was our guiding compass for short and long-term decision making, and our results reveal the positive impact of this approach with healthy financial results representing our financial stability and resilience amidst great change.”