Home furnishings retailer IKEA UK has revealed sales dipped more than 10 per cent in its last financial year amid the closure of stores in line with coronavirus-related restrictions, although it achieved a 31% surge in online sales.
Sales fell to £1.9bn in the year to August 31, from £2.12 billion in the prior 12 months.
Online sales now account for more than one-quarter of IKEA UK’s total sales.
The company said: “With stores closed for up to three months of the financial year, IKEA UK saw a decline in sales of 10.2% on the previous year, but in a year when life at home became more important than ever, online sales surged 31% compared to the previous year and now represents 27% of its total sales in the UK (compared to 19% in the previous year).”
Peter Jelkeby, country retail manager at IKEA UK and Ireland said: “2020 was the year that changed everything – from the way we live our daily lives, to the way we do business. Overall, I am proud of our performance and the way in which we’ve continued to develop and adapt our business, to better meet our customers’ needs.
“In a year when life at home was never more important, we accelerated our transformation plans by fast-tracking the rollout of Click and Collect across all stores and introducing ‘Click and Deliver’ to DPD drop-off points. Changes made over the past year will be vital for securing the future success of our business, as we continue our ambition to create a better everyday life for the many people and build back better by becoming truly people and planet positive.”
He added: “Throughout the pandemic, it was vitally important for us to take care of our co-workers and communities at a time when it was needed most. The health and wellbeing of our co-workers and ensuring they felt supported, both emotionally and financially, remains our highest priority. Through our emergency community support approach, we unleashed a huge breadth of kind acts and care into local communities – made possible by the passion and commitment of our co-workers.”