Home interiors retailer Ikea has reported sales growth of 5.8% for its 2017 financial year.
It also saw its kitchen sales increase by 4%.
Celebrating 30 years in the UK, the retailer posted total UK sales of £1.8 billion for the year ending August 31.
This was Ikea’s sixth consecutive year of growth. Sales have increased by 57% over the past six years.
It also increased its market share by 0.5%, with a goal to raise its overall market share to 15% by 2027. This it hoped to achieve by becoming more accessible.
Gillian Drakeford, Ikea UK country retail manager, said: “As we celebrate our 30th anniversary this year, we remain committed to the UK and are proud to have achieved another successful year of growth. This is testament to the talent of our co-workers and our ambition to inspire customers with the best possible experience.”
Ikea has also revealed its expansion plans, with two new store openings planned in Exeter and Greenwich in the coming year.
Since launching its website in August 2016, it has seen revenues increase by 10%, with online now accounting for 15% of total sales.
Sales and footfall continues to grow for the retailer, with a total of 57.2 million people visiting Ikea stores over the past year.
Drakeford added: “We have ambitious expansion plans for the UK and are committed to making Ikea more accessible. As well as opening new stores, we are also enhancing existing stores. Halfway through the year, we refurbished all living-room departments in preparation for this year’s ‘Make Room for Life’ campaign and we are already seeing a great response to this. We also rebuilt many of our self-serve areas by creating wider aisles, so that it’s a safer and more pleasant shopping experience for customers.
“We have also expanded our service proposition, providing our customers with more choice and convenience. In addition to our global acquisition of TaskRabbit, we also launched Click and Collect in all order and collection points.”
Matt Walton, senior retail analyst at GlobalData, commented: “Ikea’s irresistible march continues as it achieves its sixth consecutive year of sales growth, reaching £1.8bn. Online drove this growth, where sales were up 10%. This followed a website relaunch in August 2016, which optimised the site for different platforms, and in May 2017, the launch of click and collect to Ikea order and collection points. Given the importance of stores in the pre-purchase stage for furniture and the rise of the online channel, creating a more omni-channel offer is the right approach for Ikea to take.
“The 4% increase in kitchens has helped it gain ground on B&Q and Homebase/Bunnings.
“Ikea is set to continue this exceptional performance, as the retailer’s strong value credentials appeal to cautious shoppers and it opens three new stores by the end of 2018, with the aim of doubling its home market share to 15% by 2027. This will be a challenging goal. To achieve this, Ikea must continue to develop online, especially in homewares, with accelerating the roll-out of click and collect to all stores or working with a pick-up/drop-off partner such as Collect +, being two available options.”