Ikea Ireland reports 16.5% rise in sales and ‘significant growth’ in online business

Sales at Ikea Ireland rose by 16.5 per cent in the year to August, with the Swedish furniture retailer noting the success of new plan and order points across the country, as well as “significant growth” in online sales.

The Irish arm of Ikea, part of the wider Dutch-registered Ingka Group which is the largest Ikea franchisee, reached total sales of €252 million in its latest financial year to August 31st, 2023.

While profits for the period will not be disclosed until audited financial results next year, market manager for Ikea Ireland Martyn Allan said it looked like the retailer had “maintained a sustainable profit” in Ireland.

Mr Allan noted the “great success” of six plan and order points operating across the country, which are smaller than a full-scale Ikea store and give customers an opportunity to meet kitchen and bedroom design consultants.

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The retailer aims to open more plan and order points next year, with an announcement regarding new locations likely to be made around February.

Ikea Ireland reported that 33 per cent of purchases in the latest financial year were made online, up from 29 per cent in the previous year, while the number of products ordered online for collection through its click-and-collect service doubled.

The retailer now has 11 click-and-collect points across the country; it had just two locations in 2021.

Ikea said sales growth was also driven by improvements to its Ballymun store, and the “hard work and dedication” of its 730 staff in Ireland.

On the back of “extraordinary sales performance”, the retailer announced a bonus of at least 1¼ month’s pay to eligible members of its Irish workforce, as well as contributions to pension schemes.

Hourly paid Ikea staff will also receive the living wage of €14.80 from January, and salaried staff will receive an average 5 per cent pay rise.

The number of visitors to Ikea’s Ballymun store, which is the best performing Ikea store globally in terms of revenue, grew by 4 per cent to 3.2 million in the year to August.

Marsha Smith, deputy chief executive for Ikea Ireland and UK, said the company was “excited to ramp up” expansion in Ireland, adding that the “wish is there” to roll out more full-sized stores.

“I think when we have the successful year we’ve just had it all helps towards then being able to invest in different locations. Of course we know that the plan and order points are quicker to market so we will continue to do those, but it’s definitely a shared dream that we can open more full-size stores around the country,” she said.