IKEA UK Profits Dip as Focus Shifts to Affordable Sofas and Home Essentials

IKEA UK has reported a drop in both sales and profits for the financial year ending 31 August 2024, reflecting its ongoing strategy to make products like sofas and home furniture more affordable and accessible.

Sales fell 6.2% to £2.3bn, with pre-tax profits down to £72.1m from £127.9m the previous year. The decline was driven by major price cuts on popular items including a large portion of its sofa range as IKEA responded to ongoing cost-of-living pressures faced by UK households.

The retailer slashed prices across 33% of its products, including sofas, with an average reduction of 20%. It also lowered delivery fees by 15% and expanded its click-and-collect and mobile pick-up options, making it easier for customers to buy large furniture items like sofas with less hassle and lower costs.

IKEA’s online sales grew to over 40% of total sales 47% in London as digital convenience and home delivery played a bigger role in how customers shop for furniture.

Despite the drop in revenue, IKEA saw increased demand in key categories like sofas, bedrooms, and storage, and believes its affordability-focused investments will drive future growth and customer satisfaction.