Sunday 22 April 2018

Maeve Dineen: Irish retailers have much to learn from 'category killer' IKEA

IKEA's latest set of results makes for fascinating reading. The Dublin store saw its profits fall 40pc to €6.8m -- but the company still posted a turnover of €102.8m last year, which means that we were spending about €2m a week at the Swedish superstore.

That is a lot of flat-pack furniture to come out of one, admittedly huge, shop. Even in the middle of the worst recession this country has experienced in generations, the equivalent of 50 cent per adult is being spent in the Ballymun shop every week.

IKEA's success is universal. The UK-based research company Mintel calculates that IKEA has 9.6pc of the market share, despite only having 18 stores in the UK. It has also found that more than one-third of British families have bought items from IKEA in the past three years and more than two-thirds visit the shop more often than they go to church.

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