Ikea’s Irish profits nearly triple to €12.9m as sales surge

The Ikea store in Dublin is the group’s busiest in the world, with its customers here spending an average of €593,000 a day with the chain in-store and online.

Newly-filed accounts for the Irish arm show that it continued to experience a surge in sales and profits in the 12 months to the end of August last year.

Sales at the Irish unit – most of which are generated in-store - jumped 13.5pc to €216.7m in the period, from €190.9m the year before. It also paid a €3m dividend to its parent.

Three million people visited the Ballymun store during the 12 months to the end of last August.

The outlet, which opened in 2009, employs 730 people and this year is expected to welcome its 40 millionth visitor. It paid €19.5m in wages and salaries in the last financial year.

The retailer has just one large-scale store in Ireland and another in Belfast, Northern Ireland. The performance of the Belfast store is not included in the accounts just filed.

The retailer also has an order and collection point in Carrickmines, in south Dublin, and has started opening a number of plan and order stores around the country.

Ikea is also planning to open a major new distribution centre in Dublin within the next couple of years in Ireland.

Last month, Ikea started a trial where customers can pick up their orders from an initial three Tesco stores. It plans to roll out the new Collect Near You trial service to six other Tesco locations around the country later in the summer.

The accounts for Ikea Ireland note that sales here continued to jump last year despite what it said was “economic fragility”.

“Amidst Ireland’s economic fragility and a gradual recovery from the pandemic, customers are cautious about spend, but also expect the highest online and in-store experience,” the accounts note.

“Against this backdrop, we made major strategic investments towards greater affordability, accessibility and sustainability,” it added.

The company also pointed out that its home furnishings sales outperformed the market during the last financial year.

It said that its profit and sales surge last year came despite rising costs.

“The impact of the war in Ukraine and the subsequent high inflationary pressure had a significant impact in the global supply chain and in local energy and other costs,” it noted. “As a result, both our operating costs and cost of goods sold increased significantly compared to last year.”

Ikea said that it’s on an “expansion journey” in Ireland.

“We plan to invest in new and existing ways to shop and meet people including new plan and order points, a new distribution centre, developing the existing store and new delivery capabilities,” it said.

Ikea is also planning to open another major outlet in Ireland, it confirmed earlier this year. It’s likely the new store will open within a couple of years.