Investing in the in-store experience pays dividends for IKEA
UK sales soar for the home furnishing retailer
IKEA today announced total sales of £1.411 billion in the UK for the financial year ending 31st August 2014, an increase of 11.3% on the previous year.
Following an ambitious pledge last year by UK Country Retail Manager, Gillian Drakeford, to double turnover and market share by 2020, this year’s double-digit growth shows strong movement towards this reality, with market share also growing by 0.5% to 7.1%.
Commenting on the results Gillian Drakeford said, “We are delighted to report such positive growth here in the UK for the third year running. What is really encouraging is that this growth has come from our existing business, not relying on a bricks and mortar expansion programme. Over the past year we have been focused on really understanding how our customers live at home here in the UK, and presenting our unique product range in a relevant and inspiring way in each of our stores. We have continued to invest in making it easier for our customers to shop with us and are thrilled that these investments have resulted in another year of fantastic growth.”
Never Miss a Retail Update!Over the last three years, a number of investments have been made to improve the in-store shopping experience for customers and to make IKEA’s home furnishing offer more relevant to local customers.
Following a £4 million investment in 2013, the children’s and living room departments continued to see growth in 2014, with sales rising by 17% and 11% respectively.
A further 250 visits were made to customers’ homes in the areas around IKEA stores to understand how people are living in their homes, their challenges, needs and dreams. The knowledge gained in these home visits was used to redesign the display room-sets in the kitchen, bedroom and bathrooms departments, showcasing the IKEA range with local customer relevance.
Online sales saw strong growth, with a 26.8% sales uplift in 2014, following double digit growth the previous year. Online sales make up 10% of overall sales.
Gillian Drakeford continued, “In the next year and beyond, we want to be more accessible to many more people, and better known for what we do well. I believe this will really help us to grow our business further.
“We want to simplify and improve the shopping experience and offer convenience and value for time to our customers. I recognise we have a lot of work to do here, to evolve our business to meet the expectations of all UK consumers, and over the coming year we will be making a number of updates on our way to creating a truly multichannel shopping experience at IKEA.”
IKEA continues its expansion in the UK and have secured locations in Reading, Greenwich, Exeter and Sheffield, and additional sites are being considered as part of plans to be more accessible for their customers.
