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Profits drop to £17m for Ikea

1st February 2010

Swedish furniture retailer Ikea believes the impact of the global financial crisis on its own performance 'is not significant,' and insists it will further increase its market share in the year ahead.

The flatpack specialist grew UK turnover by 1.1% to £1.186m in the year to August, but pre-tax profits fell sharply, from £40.7m to £17m.

Ikea said the sales growth could be attributed to the opening of its new store in Southampton. It says besides further store openings, its long term focus is on bringing selling prices down further to ensure it remains affordable to the widest variety of customers.