Ikea sales fall for the first time in more than five years and profits almost halve

9th June 2009 | retail | Furniture retailer Ikea has seen its pre-tax margin slip for the fifth successive year with sales falling by almost £60m to £1.25bn in the past year.

The Swedish flatpack firm returned a pre-tax profit of £40.7m in the year to 31st August 2008, down from £77.4m the year before, and a hefty £113m down on 2004, when the retailer’s pre-tax margin stood at 15.1%.

Ikea said it still wants to expand significantly on its existing 17-store base in the UK, and has a number of planning applications in the pipeline. Dublin, which will open later this year, remains the only confirmed opening for 2009 in either the UK or Ireland.

The retailer’s stock turnover, at 3.8%, is marginally higher than the previous 12 months period, but well below the 16.3% it enjoyed back in 2005.