IKEA reveals effect of coronavirus restrictions on UK trading

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).”

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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.”

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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.”

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