DIYWEEK.net

Swedish home furnishings retailer Ikea has suffered a 3% dip in like-for-like sales for the year to August 31.
Despite low consumer confidence and a stagnant housing market resulting in a tough year for the retailer, Ikea has continued to invest in its store portfolio and its value for money proposition, boosting its market share from 6.1% in 2010 to 6.3% in 2011.

Kitchens saw a like-for-like sales uplift of 6%, thanks to the growing customer uptake of the kitchens service package launched last year, and the re-design of the kitchen showrooms to reflect how people live in local areas around the stores.

The bedroom department has also seen a similar re-design - a £2.5m investment - based on people's lives at home following research around each store's local area. As a result, the company says it has already seen a 12% uplift in this category.

Ikea has also lowered its prices by 5% year-on-year across the home furnishings range, and added 800 more products to its online offer.

Commenting on the full-year results, Ikea UK country manager Martin Hansson said: "Low consumer confidence, coupled with the stagnant housing market, has resulted in another tough year for us. Despite this, we remained focused on giving our customers the best value for money home furnishings, which I believe has helped us strengthen our market leader position."

He added: "In 2012 we will be celebrating 25 years in the UK and look forward to celebrating with our customers."

Ikea is set to invest £26.6m in improving its instore shopping environment over the next year, and plans to add a further 1,500 products to the range available online.