IKEA Ireland announces double digit sales growth
IKEA continued to see more customers in Ireland shopping online, with the share of online purchasing landing at 33%, up from 29% in the previous year. The Click and Collect service grew significantly, with 644,000 products ordered online for collection, more than double the number of products received in the 2022 financial year. As a result of these rapidly changing shopping behaviours, 2023 was the first year when IKEA Ireland sold more sofas online than through its stores.
At the same time, the number of customers visiting the IKEA store in Ballymun increased, by 4%, to 3.2 million visitors. The IKEA restaurant continued to be a popular destination, with over 3.6 million meatballs and 105,000 children’s meals served. The number of plant-based dishes reached a record, with 41% of all meals being plant-based.
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The company’s strong performance, together with a downward trend of global commodity and transportation prices, enables IKEA to lower prices. Already, IKEA Ireland has permanently lowered prices on over 250 products. For example, MICKE desk has gotten a new price of €55 from previous price €70, and IKEA 365+ frying pan has been lowered by 21% to €15. This price reduction will continue early next year with even more products receiving a new lower price. In addition to the permanently lowered prices, 375 products will go on sale in December, alongside a Christmas Advent Calendar with daily offers.
“Intensification of internal efforts to reduce costs across the IKEA value chain now enables us to decrease prices. In challenging times when many people struggle with the cost of living, the need for home furnishing solutions at affordable prices is high. This is where we continue to do what IKEA has always done – putting customers’ affordability first.”
IKEA's Buy-back and Re-sell scheme saw a significant upswing, with 2,717 pieces of furniture repurchased, marking a 60% year-on-year increase, rewarding customers with an average in-store credit of €40 for their used IKEA furniture. Complementing this effort to ensure IKEA furniture got a longer life, IKEA provided 33,302 spare parts at no cost.
The company’s 8MW wind farm near Manorhamilton, Co. Leitrim produced about four times the amount of electricity that IKEA consumed. In addition, to produce even more renewable energy, Ingka Investment, the investment arm of the company, announced an investment in 10GW offshore wind project portfolio in Ireland and UK.
Over €1.8 million investment in people
This substantial growth is being felt by IKEA's co-workers too. IKEA Ireland has invested significantly in its people in the 2023 financial year and remains committed to paying the voluntary living wage rate, set by the independent Living Wage technical group. From January 2024, all hourly paid IKEA Ireland co-workers will receive the new €14.80 Living Wage, well above the National Minimum Wage of €12.70 per hour. Salaried co-workers will receive an on average 5% pay increase.
Following the extraordinary sales performance, every eligible member of the team throughout Ireland will receive a bonus1 – of approximately one and a quarter month’s salary – in time for the festive season. Additionally, IKEA Ireland will allocate a total of €450,000 in contribution through the company’s “Tack!” loyalty pension programme2, an extra pension allocation of €1,100 for an eligible full-time co-worker.
The reward offer, together with a newly launched flexibility approach, enabling co-workers in Ireland to change contract sizes and shift patterns, work compressed hours, and reduce hours temporarily during student exam time or other life events, has led to the co-worker turnover rate drop significantly to 28%, from 40% previous year.
Bringing IKEA to more people in Ireland
IKEA has ramped up its investment in new places for customers to access IKEA, as well as improved services. Following the much-awaited arrival of IKEA in Cork last March, IKEA now has six locations where Irish customer can meet IKEA physically, up from only two locations just two years ago.
To complement the Ballymun store, IKEA has opened Plan & Order Points to provide customers with free, bespoke design consultations with experienced IKEA kitchen and bedroom storage experts. The Plan & Order Points are located in Naas, Cork, Drogheda, St. Stephen's Green in Dublin, with plans to open in more locations in 2024.
To support this strategic move to enhance the offering of well-designed and affordable kitchens in Ireland, IKEA has significantly expanded its kitchens design team. This kitchen expansion sees the hiring of 46 co-workers, including 22 expert kitchen installers across the country, together supporting a strong, double-digit growth in the area.
The number of IKEA pick-up points has also radically grown, from only two in 2021 to eleven today. Last year, the IKEA Pick-up points were extended in a collaboration with Tesco, offering customers a possibility of free3 delivery to their Tesco Megastore in areas further away from the IKEA Ballymun store, such as Ballinasloe, Galway, Newcastle West, Co. Limerick, Clonmel, Co. Tipperary, and Tramore Co. Waterford.
To slash delivery times by more than half and improve stock availability, IKEA Ireland will open its first Irish Customer Distribution Centre in 2024. This is made possible through Ingka Investments undertaking their globally first ever logistics investment. When fully up and running, the Customer Distribution Centre will create 120 jobs across warehousing, logistics, and administration.
IKEA Ballymun has risen to become our globally best performing store by revenue, truly showing the love Irish people have for IKEA. We’re excited to ramp up our expansion to areas where we have limited presence today; this includes establishing new Plan & Order points and new convenient Pick-up locations, alongside quicker delivery services, all aimed at bringing IKEA closer to our Irish customers.”
Marsha SmithDeputy CEO, IKEA Ireland and UK
Other highlights from the 2023 financial year
- IKEA sold nearly 19 million home furnishings and accessories last year.
- The Swedish Food Market in the Ballymun store was the most popular one world-wide 2023.
- IKEA Ballymun stands out globally for extraordinary sales in the cooking & eating, home decoration, and home organisation departments.
- To continue the success IKEA is investing in their Store Showroom with new Bedrooms and Children’s departments being opened in January.
Webinar
Watch the webinar with Marsha Smith and Martyn Allan presenting 2023 year's performance for IKEA Ireland.
Note to Editors
The (financial) information in this press release is unaudited, full financial result and audited financial statement for IKEA Ireland Limited will become available through the Companies Registration Office during the first half of 2024. The 2023 Financial year refer to 1st September 2022 – 31st August 2023
1 IKEA’s annual performance-driven bonus programme rewards co-workers when the business meets or exceeds specific business goals. The pay-out varies every year and is based on the performance of the business unit, or a retail country and market area. All co-workers employed on the 31st of August for at least 180 uninterrupted days during the fiscal year are eligible.
2 Tack means “thank you” in Swedish. The “Tack!” pension funding is divided between all countries where Ingka Group is represented. Every full-time co-worker who has worked for Ingka Group for five financial years or more receives the same amount of extra contribution to their pension fund, regardless of their position or salary level. Part-time co-workers receive a proportional contribution, in relation to the hours worked.
3 The Collect from a mobile pick-up point is free for orders over €200, €15 for all other orders.
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