IKEA to open new stores as UK profits more than double

IKEA’s UK profits more than doubled during its latest financial year as it sets it sights on opening new stores.

The retail giant has posted sales of £2.46bn for the year to August 2023, up from £2.20bn, while its operating profits surged from £49.6m to £111.2m over the same period.

The 12 months was the third straight year in which IKEA made a profit in the UK, having fallen to a £32.7m loss in the period to August 2020.

IKEA added that it saw a 19 per cent growth in online sales and a 24 per cent rise in remote sales.

There was also a 48 per cent increase in click and collect purchases while new city stores were announced for London’s Oxford Street and Brighton.

Peter Jelkeby, CEO and chief sustainability officer at IKEA UK & 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 a 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.”

During the year, IKEA opened plan and order points in Aintree, Stockport and Preston, with more set to be launched.

Mr Jelkeby 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.”