Ikea Ireland has reported a jump in revenue by more than 15 per cent to a record €152 million.
The home furniture giant’s had 3 million visitors to its Ballymun store just off the M50. The three million visitors also represent an increase of 15% on the 2.6 million that visited the store in 2015.firm paid a dividend of €11m to its parent firm last year.
Despite the record recording-breaking revenue, profits did not rise in the same way. The company’s pre-tax profits decreased by 10% to €11.48m. The drop is profits is a result of higher costs including administrative expenses which increased by 30% from €29.6m to €38.6m and the cost of sales going up from €87.37m to €100.3m. Staff costs at Ikea last year increased to €17.2m.
The retailer also employed additional 110 new workers during the year taking the total number of staff to 663.
The average shopper spent €50 per trip and the total number of trips to the outlet were also 15% higher than 2015.
The Swedish retailer, famed for its flatpack stylish homewares last year opened a new outlet in Carrickmines in south Dublin in addition to its flagship store in Ballymun on the north side of the city.
The Swedish retail giant Ikea will open a second Irish store in Carrickmines, South Dublin. The second Irish Ikea store will be a scaled down version of the Ballymun unit. The Park, a shopping and business park just off exit 15 on the m50 will offer Ikea a 15,000 sq ft premise and also see Ikea introduce their first order and collect point in Ireland.
Ikea have agreed a lease with property group Iput, believed to be for ten years. The store will also include a café. The smaller sizing that Ikea had previously revealed they were gearing towards will allow customers to collect orders made online. Niall Ringrose, Head of Property Management at Iput said the deal would significantly enhance the “already high-quality” retail offering at The Park.
Retailer Ikea doubled their Irish operating profit last year, registering a pre-tax profit of €13.2 million. Sales in the North Dublin superstore jumped by 17% to €132 million in the 12 months, till end of August 2015.
This meant a considerable leap in pre-tax profit, up from €7.2million in 2014. The flat pack retailer have experienced accelerated growth over the past 24 months. Last year Ikea announced that employees in their only Irish Store would all receive a ‘Living wage’ with this being implemented in April of the current financial year.
There has been much debate surrounding Ireland’s minimum wage of late. Many argue that minimum wage is not reflective of the cost of living and thus ‘The Living Wage’ is a better reflection on the minimum amount Irish workers should earn on an hourly pay scale. Enter Ikea…
The Swedish Retail giant has agreed to pay all its Irish staff ‘A living wage’ ensuring a meaningful wage for all workers. Ikea have only one Irish store, located in Ballymun North Dublin. The flat pack giant will issue pay cheques based on the cost of living for employees in Ireland and the UK.
Ikea HR manager for the UK and Ireland Pernille Hagild said as a ‘values-driven organisation’ the chain believed in “providing a meaningful wage to our co-workers that supports the cost of living no matter where they live”.
He furthered ‘’Over the coming months we will work together with the relevant organisations and authorities in Ireland to secure this in the right way in the Irish market.” In the past days the government have agreed to increase the mimumim wage (€8.65 per hour) by 50 cent. Ikea already pays their staff above this, with the bottom pay scale €9.77 per hour.
A consortium of unions and other campaigners have put the living wage in Ireland at €11.50 per hour although it’s not yet known on what basis Ikea will calculate its rate.
Ikea plans to trial new smaller format stores in an attempt to extend their reach across Britain and Ireland. The privately owned Swedish company is known for their extensive stores and flat pack offerings. Beginning in Norwich this Autumn, Ikea will trial ‘order and collection’ points.
Ikea currently operate 18 stores in the UK, which customers cite as ‘too far away’. Ikea’s UK manager Gillian Drakeford said of the new venture ‘’Order and collection points give us the opportunity to trial new ways of being more accessible to our customers’’. Ikea have currently opened similar formats in Spain, Finland and Norway.
The Norwich outlet will allow customers to touch and test Ikea’s product range, speak to home furnishing experts and make and collect orders made online or in the store, which will also include an Ikea cafe. The move is part of a global initiative as Ikea. Ikea currently has 315 stores in 27 countries and aims to double sales to about €50 billion by 2020 through sales growth at existing stores, new stores and new markets.