Sales reached 1.9 billion pounds, e-commerce has become IKEA's winning magic weapon in the UK

Recently, home furnishing retailer IKEA announced that its total sales in the UK for the financial year ending August 31, 2020 (FY20) were 1.9 billion pounds.

IKEA UK reportedly closed a large number of stores in the three months of this financial year , with sales falling by -10.2% compared to the previous year .

However , during the epidemic, family life has become more important than ever , and sales of related products have skyrocketed, with online sales increasing by 31% . Currently, online sales account for 27% of its total sales in the UK , compared with 19% the year before .

  Changing business methods and accelerating e-commerce transformation

In the face of the pandemic , IKEA accelerated its transformation plan , allowing it to meet customer needs like never before.

To help cater to these new shopping behaviours, digital initiatives were rapidly rolled out, including launching Click and Collect in all stores , using stores as local fulfilment and distribution centres to increase capacity and reduce delivery times, and offering remote kitchen , wardrobe and living room storage planning, ensuring customers still have access to IKEA home furnishings.

It has also launched a nationwide click and deliver service, with 4,000 DPD deliveries per day, and introduced a tiered pricing structure based on the size of the order and speed of delivery, starting from £2.00.

Peter Jelkeby, country retail manager for IKEA UK and Ireland, said: “2020 has changed everything , from our daily lives to the way we do business. Overall, I’m proud of our performance and that we continue to evolve and adapt our business to better meet customer needs. ”

Sustainability is a top priority

Despite the disruption to the company’s operations caused by the pandemic , IKEA remains committed to addressing the climate emergency and continues to work towards a sustainable economy . As a business, IKEA sources 100% of its electricity from renewable sources.

IKEA said that providing customers with affordable products, affordable health and sustainable living is the company's top priority. It is reported that sales of IKEA's " People and Planet Positive" series products are particularly strong, with a total of 63 million pieces sold , accounting for 30% of the total annual product sales.

Looking ahead to 2021, the retailer will continue with this initiative, such as removing all non-rechargeable alkaline batteries from its furniture range, while launching a " buyback " service to purchase unwanted IKEA furniture from customers and resell it as second-hand products.

IKEA

U.K.

Sales