Ikea UK turnover hits £2.5bn as profits double in FY23

Ikea UK has seen turnover hit £2.46bn in FY23, with total sales up by 11.9%, as operating profits almost doubled from £49.6m to £111.2m. 

Trade was particularly boosted by click and collect purchases, which soared by 48% over the period. In addition, there were one million new visits to IKEA UK stores, up by 2.2% against FY22, while online sales rose by 19% to now make up a 38.5% share of total sales.

As well as the boost from click and collect purchases, remote sales also soared by 24% over the period.

Ikea UK said its strong performance “reflects continued investment in a more accessible Ikea” through the introduction of new offerings including Plan and Order Points, which are smaller stores dedicated to kitchen, bedroom, and living room planning, in the North West of England, alongside a new mobile collection service that is being rolled out nationally in partnership with Tesco.  

Investments in logistical operations were also “essential” to its full-year performance, Ikea said, as it enabled “faster and more sustainable deliveries to meet the growing demands of Ikea’s online and offline business”. The opening of a multi-million-pound customer distribution centre (CDC) in Dartford also resulted in increased fulfilment and cost efficiencies, alongside growth.    

Peter Jelkeby, CEO and chief sustainability officer, Ikea UK and Ireland, said: “In our 80th year, we can be proud of our performance. FY23 was a year in which we improved our customer experience, grew our market share and continued making meaningful investments in our business and people.

“Having overcome challenges posed by Brexit and Covid, we have since focused on creating a more efficient organisation and improving our profitability, which gives us the financial strength to continue investing for generations to come. Despite a difficult economic climate, our focus remains on new locations, new store formats, and in new services.”

He added: “As we look to the future, we are proud to have kickstarted 2024 by lowering a significant volume of prices, with more to come; underscoring our commitment to being on the side of those with the lowest means. Guided by the foundations set out 80 years ago, we’ll continue building a business that contributes to better homes for our customers, better lives for co-workers and communities, and a better planet for all.”