Business Irish

Saturday 23 February 2019

Ikea not planning new stores in Ireland as sales hit €167m

Ikea’s outlet in Ballymun
Ikea’s outlet in Ballymun
Ikea Ireland’s market manager Claudia Marshall
John Mulligan

John Mulligan

Ikea's store in Ballymun is as busy as some of the Swedish group's biggest international stores in places such as Russia and New York, with more than 3.6 million visits paid to the Dublin outlet in the last financial year.

The Ikea store is ranked number two among all its global outlets for home decoration sales, and number three for lighting sales.

But despite the huge number of visits paid to the store, Ikea Ireland's market manager, Claudia Marshall, said there are still no public plans to open any other outlets. There's been recent speculation that the retail giant has been eyeing a site in Cork city.

Speaking to the Irish Independent as Ikea Ireland posted a 10pc increase in sales to €167.1m during the 12 months to the end of August, Ms Marshall said that the chain continues to look for opportunities to grow its business across Ireland.

In 2016, Ikea opened an order-and-collect premises in south Dublin, at Carrickmines, which in the 12 months to the end of August attracted 400,000 shoppers. Ikea also has an outlet in Belfast, which isn't included in the financial results released yesterday.

Ms Marshall declined to reveal a profit figure for Ikea Ireland, or if profits had continued to decline despite the rise in turnover.

Accounts filed at the Companies Registration Office earlier this year show that Ikea's Irish arm posted an €11.8m pre-tax profit in the 12 months to the end of August 2016. That was 10pc lower than the €13.1m it made a year earlier. It also paid an €11m dividend to its parent firm in 2015.

Ms Marshall said the group continues to use profits to reinvest in its Irish business, including lowering prices on some products.

"We know that we are offering value for money, and that's the growth driver," she said.

Ikea generated global retail sales of €34.1bn in its last financial year, and an operating profit of €3bn. There are more than 400 Ikea stores around the world, with about 360 of those owned by the group and the remainder operated by franchisees.

Irish Independent

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