IKEA UK returned to profit in the year to August 2021, with significant demand driving sales of £1.96b (+2.7% YoY), despite the stores being closed for up to 17 weeks during that period.
Turnover was up +2.7%, and operating profit reached £61.2m (against a loss of -£32.7m in the previous financial year).
Investment in omnichannel business helped IKEA create a +69% uplift in online sales (representing 45% of total sales), supported by improved delivery services – stores were transformed into regional fulfilment hubs, while IKEA’s Click and Collect capacity was expanded.
IKEA also expanded its remote planning and selling capabilities, enabling many of customers to plan and buy home furnishing solutions from their homes, with the assistance of remote sales staff.
More recently, IKEA opened a smaller format store in Hammersmith in February – as well as proposing the closure of its Tottenham store this year – while its Oxford Street store is due to open in autumn 2023.
