IKEA UK has reported a decline in sales and pre-tax profit for the year ended 31 August 2024, with total sales falling 6.2% to £2.3bn and pre-tax profit dropping to £72.1m from £127.9m in 2023. Sales of goods decreased to £2.1bn, food revenues fell to £77.8m, and service sales slipped to £67.4m.
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The retailer stated it made "significant progress in becoming more affordable, accessible and sustainable," investing over £117m to lower prices on approximately a third of its range, with an average reduction of 20%. Delivery costs were also reduced by 15%, and new click-and-collect and mobile pick-up points, including Tesco locations, expanded customer convenience. Nearly 240,000 orders were fulfilled through these channels, with online sales exceeding 40% nationally.
Despite the decline in revenue, IKEA UK maintained a gross margin of 30.7% and a positive operating profit of 1.7%. The company emphasised that these investments supported long-term growth, improved co-worker engagement, and strengthened customer satisfaction.
IKEA UK also opened a new store in Brighton as part of its ongoing national expansion strategy.
Source: www.bigfurnituregroup.com
