IKEA UK says low prices remain a priority as it announces a decline in retail sales
IKEA UK saw its retail sales decline by 6.8% to £2.3 billion in its 2024 financial year following a strategic decision to invest more than £117 million in lowering prices.
The price reductions were applied to 33% of the home and furniture retailer’s range and included some of its most popular products.
Despite the impact on FY24 revenue, IKEA saw an uptick in demand as the year progressed and as more new lower prices were introduced, particularly in key categories like kitchens, bedrooms and storage solutions.
The retailer also introduced reduced furniture delivery pricing.
Peter Jelkeby, chief executive and chief sustainability officer at IKEA UK, said: “In a year of economic uncertainty, our priority was clear: stand with our customers. In spite of our reduced turnover, continuing to lower prices remains our long-term priority. This is true to the IKEA vision.”
IKEA’s online sales accounted for 41.7% of UK sales in the year, up from 38.5% a year earlier. In London, every second order is now coming through its ecommerce business after the share of online sales reached 51.4% in FY24.
The retailer will be opening two new city stores in London’s Oxford Street and in central Brighton next year, each of which will be over 50,000 square feet. It is also planning to launch over five Plan and Order Points which will offer free, bespoke kitchen and bedroom design consultations.
In July, IKEA opened its 100th mobile pick-up point as part of a scheme where customers can collect items from their local participating Tesco store.
Jelkeby said: “We continue to dedicate our energy to our UK expansion plans and investing heavily to become more accessible. To complement our existing stores, we are laser-focused on continuing to innovate to reach more customers, with a network of new, smaller stores that offer different experiences, as well as new services that meet all of our customers’ needs – no matter where they live.”
