Ikea UK posts retail sales of £2.25bn for financial year 2025 amid tough economic environment

Ikea UK has announced retail sales of £2.25 billion for financial year 2025. Whilst an annual decrease of 2.1% compared with FY24 sales (£2.30 billion), the retailer did see an upward sales trend in the last quarter of the year (+3.3%), which continued into September 2025 (FY26). 

Amid limited UK economic growth, high interest rates and rising living costs, it said that it maintained a stable market share.  

Following a £117 million investment in price reductions during FY24, it accelerated its expansion in FY25 with four new store openings in the final quarter and the addition of 101 'Collect Near You' points. These initiatives contributed to a 4% increase in sales volumes year-on-year. 

“In a challenging environment marked by economic and trade uncertainties, rising cost-of-living pressures and weakened consumer confidence, I am proud that we continued our programme of strategic investments in the UK to build a more affordable, accessible and sustainable Ikea. We saw these investments begin to pay off in the final months of FY25 and now into FY26, which gives us confidence for the year ahead,” says Peter Jelkeby, CEO and CSO at Ikea UK. 

Ikea opened new physical formats designed for customer convenience. These included two new city centre stores, on London’s Oxford Street and in Brighton’s Churchill Square Shopping Centre. Oxford Street generated 1.34 million visits in its first four months. 

It also opened two of three new format small stores in FY25, in Harlow and Norwich. Located within busy retail parks, the third one opened in Chester last week. 

Two new Plan and Order Points were launched in Hull and York in FY25. As the retailer’s smallest format, Plan and Order Points are focused on planning, designing and ordering kitchens and bespoke storage solutions, as well as offering collections for online orders.  

“Our network of stores is hugely important, not only as a point of purchase but as a source of inspiration for customers, with our famous showrooms tailor-made for local communities. Last year was a landmark year for expansion, with four new stores and two Plan and Order Points, and we’re seeing an exceptional response to these units. As well as strong footfall, there has been an increase to online sales in the new areas we’ve launched, showing a clear desire for our brand and range,” Jelkeby says. 

Online sales grew by 2% in FY25, accounting for 43% of total sales compared with 41% in FY24. Enhanced delivery capabilities through Ikeas distribution centre in Dartford and in-store fulfilment, the expansion of collection points for online orders, and investments in lowering delivery prices for Family members helped drive this increase in online sales. 

Jelkeby adds: “While our strategic investments in affordability and accessibility are delivering strong results, we’re trading in a difficult economic environment. Simple, targeted support from government, like easing the burden of business rates would make a tangible difference, encouraging retailers to continue investing, saving existing jobs and creating new ones, and serving communities across the country.” 

2025 RTIH INNOVATION AWARDS

Omnichannel retail will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which are now closed for entries with our finalists and shortlists being announced last week, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.