Home furnishings company IKEA today announces a successful trading performance for the first 16 weeks of the financial year, which saw the company break its own record for sales performance for the post-Christmas sale period.
The first 16 weeks of the financial year 2015 have seen total growth at 11.1%, which follows the recent announcement of 11.3% growth for the financial year 2014. This has put the company on track for four consecutive years of growth. Store sales for the period were up 8.8% and online sales up 33.5%.
IKEA also reported a year-on-year growth of 13.5% in online sales and a further 4.5% growth in stores over the post-Christmas sale period, despite the festive snow in parts of the country and one fewer days holiday compared to the previous year. It also follows growth in the same period the previous year of 12% in store and 65% online.
UK and Ireland country manager, Gillian Drakeford, said: “We are delighted to have achieved another strong start to our year and are pleased to report an uplift in sales during the post-Christmas period, particularly after such a great performance last year. What is really encouraging is that this growth has come from our existing business, not relying on a bricks and mortar expansion programme.
“We’ve seen the main areas of growth in bedrooms, bathrooms and kitchens where we have made recent investments to improve the shopping experience for our customers. Growth has also followed the investment of over £27m to lower the prices of our products throughout our range. We believe in making it easier for our customers to shop with us and are thrilled that these investments have resulted in further growth so far this year.
“Going forward, 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 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 said success has particularly been seen in the bedrooms department, where like-for-like sales of mattresses have increased by 40.6% since 1 September. This follows the introduction of UK bed and mattress sizes to the entire IKEA range. Other areas that have so far seen successful growth in financial year 2015 include bathrooms, +18.9%, kitchens and dining, +9.4%, and living room furniture +9.1%. This year’s most successful product has been the FRIHETEN corner sofa-bed, which has seen an increase in sales of 132% after the price was lowered from £450 to £395.
‘The Joy of Storage’, the next instalment in the ongoing ‘The Wonderful Everyday’ advertising campaign, celebrates the difference great storage makes and launches on 10 January. Until now, storage has been seen as a functional necessity, however this latest ad will champion great storage not as a solution to a problem, but as a celebration of the wonderful feeling that comes from having storage that meets your everyday needs, IKEA said.