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IKEA UK & Ireland’s growth continues

IKEA UK & Ireland’s growth continues

Business areas with the most significant upwards shift in like-for-like sales include:

Kitchens: + 11% coupled with a +1.4% market share uplift - the biggest shift seen onthe market over this period
Storage across the home: +11% YOY
Dining solutions: +9% YOY
Children’s IKEA: + 4% YOY

Over the last year, IKEA UK & Ireland invested £11 million on improving the shoppingexperience in existing stores including adding self scan check outs in 12 out of its 19 stores tomake payment faster.

For the first time ever, figures from market intelligence specialist Verdict Consulting confirmthat IKEA took the lead in the home furnishings market with a 6.0% share at the end of 2009.IKEA is also currently number one in Verdict Consulting’s Consumer Satisfaction Index for itsHomewares range.

Commenting on the Company’s performance, Martin Hansson, IKEA UK & Ireland’s CountryManager said: “It has been another challenging year for us but despite the overall homefurnishings market being in decline, we have delivered a small growth.

“By staying close to our customers we have understood they are more conscious of price but donot want to compromise on quality, design or good service. Therefore, we have focused onalways offering the lowest priced products across each area of the home.

“In recent months we launched a full service package for our kitchens, meaning we can nowplan, install and deliver our customers’ kitchens. This has already proved to be very successful.We also added bathroom installation to our list of services which already included options suchas home delivery and product assembly.”

The year ahead
Focusing on customers’ needs will remain a priority for IKEA UK &Ireland in the coming year.Hansson continues: “By focusing on two key areas - affordability and improved service levels - Iam convinced we will continue to see stable, if not increased visitation to our IKEA stores overthe coming period.

“I believe we will achieve growth by continuing to lower our prices. Compared to this time lastyear, our prices are already 5% lower across our entire home furnishings range. We also needto be even more relevant in our offer and continue to improve the shopping experience andservice in our stores.

“In the first half of 2011 it is our intention to launch a new and improved home delivery service. As part of this customers will be able to select from a wider choice of products online. Currentlythere are around 3,700 articles and we are looking to increase this by more than 500 products. These will mainly include bedroom textiles, lighting and rugs – everything a customer needs tobuy a complete bedroom solution. We will also introduce a lower home delivery charge.”

“Our latest research shows that 82% of our shoppers will recommend IKEA to a friend which ispositive news for us. However, a lot of consumers still believe that the IKEA proposition islimited to self service so we still have some work to do to make our customers aware of ourservice offer.”

*The fiscal year for IKEA UK & Ireland is 1 September 2009 – 31 August 2010. TheIKEA Group operates 280 IKEA stores in 26 countries. In addition there are 34 IKEAstores that are owned and run by franchisees by the IKEA Group in 16 countries/territories.


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