The UK division of Swedish furniture retailer IKEA has announces retail sales of £2.25bn for financial year 2025.

Whilst an annual decrease of 2.1% compared with FY24 sales (£2.30bn), IKEA UK saw 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 – key growth barriers for the home furnishing market – IKEA UK maintained a stable market share.  

IKEA continued its long-term journey to make its products more affordable for customers and strengthen its omni-channel offering.  

Following a £117 million investment in price reductions during FY24, the company 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,” said Peter Jelkeby, CEO and CSO, IKEA UK. 

IKEA made strategic investments to give customers the flexibility to shop with the retailer in the way that is most convenient to them. 

IKEA expanded its UK footprint, opening new formats designed for customer convenience. These included opening two new city centre stores, on London’s iconic Oxford Street and in Brighton’s Churchill Square Shopping Centre. IKEA Oxford Street, in one of the world’s most famous shopping destinations, generated 1.34m visits in its first four months. 

IKEA also opened two of three new-format small stores in FY25, in Harlow and Norwich. Located within busy retail parks, this world-first format is designed to offer a simpler, faster shopping experience for customers. The third small store opened in Chester last week, as IKEA’s strategic expansion continues into FY26. 

Two new Plan and Order Points were opened 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,” Peter continued. 

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

Peter added: “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.”

IKEA continues to bring new and innovative products to market that are functional, quality, sustainable, affordable and with good form, in line with the retailer’s principles of Democratic Design. In FY25, Kitchens and Bedrooms were the two key commercial focuses, both of which recorded solid growth (+1.8% and 2.7% respectively). 

Some of the retailer’s newest products were among its best performers in FY25, including: 

• The PILSPINNARE soft cotton pillow, engineered to maximise comfort for those who sleep on their back or side.  
• The HAGERNÄS table and chairs; compact, solid-wood table and chairs with traditional styling that gives a sturdy, upscale look at a budget-friendly price. 
• The new STOCKHOLM collection that blends durability and craftsmanship to create beautiful and timeless furniture. 

Peter said: “Our range is at the heart of everything we do. Our customers trust us to provide well-designed, high-quality and affordable home furnishings – we take that mission seriously and consistently deliver.”

In other news, Ingka Group continues to advance gender equality and inclusion across its global business, reflecting its long-term commitment to building a fair and equal workplace where women and all co-workers can grow and contribute.

As the largest IKEA retailer, operating in 31 markets, Ingka Group is guided by the IKEA vision: to create a better everyday life for the many people and is built on a strong culture and shared IKEA values that shape how the retailer leads, grows and cares for people.

These eight values, including togetherness, simplicity, renew and improve, and caring for people and planet, guide how more than 160,000 co-workers work together every day to create a fair, inclusive and people-positive workplace.

This long-term focus on gender equality and inclusion has delivered measurable progress. Today, women make up 50% of all managers and 48% of Country CEOs across Ingka Group. The company’s unadjusted gender pay gap has narrowed to 4%, with less than 1% of co-workers requiring monetary adjustments, reflecting a continued commitment towards gender equal pay for work of equal value.

This progress has now been recognised by Forbes, which named IKEA among the World’s Top Companies for Women 2025, ranking IKEA in the top five globally. The recognition reflects how a values-based culture can drive both inclusion and business performance.

Ulrika Biesèrt, Chief People & Culture Officer, Ingka Group, said: “For us, it’s good business to be a good business. When our teams reflect the diversity of the customers we serve, we understand them better and can meet their needs in better ways. Diverse teams make us stronger, they drive innovation, growth and better decisions. But above all, it’s the right thing to do.

“Reaching gender balance in leadership was an important milestone, but our journey continues. With more than 80 years of learning behind us, we know that culture and values are our greatest strengths. They help us navigate change, stay true to who we are and continue building a better everyday life for the many people we serve.”

While there is more to do, this progress reflects many years of sustained focus on equality, inclusion and leadership development, from annual gender pay-gap reviews and inclusive succession planning to creating development opportunities that help women take on new challenges and leadership roles early in their careers.

“We strive to create a workplace where people feel trusted, supported and safe to share ideas and learn from mistakes. That sense of belonging is essential for innovation, growth and delivering on our vision and purpose,” adds Biesèrt.

That sense of belonging is reflected in the way co-workers experience everyday work at IKEA. In a recent global survey of more than 134,000 co-workers, 84% said they feel they can be themselves at work.

Over decades, Ingka Group has taken deliberate action to strengthen equality, diversity and inclusion and create a workplace where everyone can grow and contribute to the business, including:

• Annual gender pay-gap reviews to ensure equal pay for work of equal value, including removing salary history requests from recruitment to reduce bias and promote fair pay practices.
• Inclusive succession planning to strengthen gender balance in leadership pipelines.
• Global menopause guidance to support co-workers and help normalise conversations about health and wellbeing in the workplace.
• Leadership development initiatives, such as the Bloom programme, which encourages co-workers to step into new challenges early in their careers, building confidence and learning through experience, an approach that helps leadership grow at every level.

“We want to continue to create equal opportunities and make sure every co-worker feels seen, supported, and able to grow. Leadership at IKEA has never been about titles. It’s about how we act and the choices we make every day, what we call “leadership by all.” It means everyone, no matter their role, can lead by example, by being curious, caring for others and contributing to change, whether serving customers in a store, working in a fulfilment unit or developing new digital solutions,” says Ulrika Biesèrt.