Ikea’s online expansion boosted sales by 3.1%

By VCPOST Staff Reporter

Nov 23, 2013 07:49 AM EST

Ikea's overall sales rose 3.1% to EUR 1.27 billion for the financial year to August. With an impressive 29% increase in online sales, the growth signaled the entry of the world's biggest home furnishings store to new demographics. Last year, Ikea increased at around 80% from the extent of its product range available online, and had spread its home deliveries as well to cover most of Britain.

In its 25th year in the UK, Ikea increased its leading market share in home furnishings by 0.2% to 6.4%. The sales figures reflect similar increases across the other businesses worldwide, which led to a combined EUR 27.9 billion in sales made across 26 countries.

Outdoor furniture saw the biggest lead in sales, up 58% with stores now making the product range available anytime of the year despite Britain's uncertain seasons. Last but not the least, sales in lighting also rose due to a push towards LED bulbs.

Ikea, established 70 years ago in Sweden, reached Britain in 1987 with its first store in Warrington. Fast forward to the present, it now has 18 massive stores across the UK. Its semi-warehouse model had an effect in UK consumers, prompting a mass conversion of the country to do-it-yourself home furnishing and Scandinavian interior design at affordable prices.

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