Swedish furniture company, IKEA, has announced an increase in sales in the UK due to its online expansion.
The company has had a large boost in sales, increasing their online sales by 29% this financial year which ended in August. In addition, overall sales increased by over 3% generating a total of £1.27 billion.
Last year, IKEA doubled the number of products available online amounting to 80% of the overall product range sold in store. This amounts to a total of 7,500 products that are now available for purchase online.
They also improved their delivery system which now covers the majority of Britain. This is believed to be the greatest contributing factor to the success IKEA saw this fiscal year.
The company saw further success in its increased market share. It became the leader in home furniture with total share in the UK increasing by over 6%.
IKEA’s UK retail manager, Gillian Drakeford, explained that the company has placed a new emphasis on easing the buying process for the consumer.
‘We have worked hard to put a renewed focus on the customer over the past year. With the continued uncertainty around the recovery from the recession, we have continued to invest across our online and in-store shopping channels to create a simpler, more convenient and enjoyable experience’, she said.
Drakeford also explained that this strategy aims to grow current market share to double its current standing in less than 10 years.
Plans for the upcoming year include restructuring and investing into the kitchen section of the company by redesigning stores and further improving delivery service. Drakeford adds, “‘We will invest £8million in improving the kitchen business, including rebuilding all showrooms, staff training, improving our delivery and installation services.”
In addition, IKEA UK plans to improve home energy expenditure by offering products that save water and electricity and other products that reduce waste.
In line with a new environmentally friendly approach, IKEA will begin to sell solar panels in their stores and online. Also, recycling bins will be found at the stores.
The success the home furnishing company saw in the UK, they also saw globally.
Total revenue for the company reached close to €30 billion from stores in 26 countries. However total profits have not yet been revealed and will be disclosed at the beginning of next year through IKEA’s annual report.
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