IKEA’s Ballymun Store Achieves Global Revenue Peak, Records €252 Million in Sales for 2023
IKEA Ireland has reported a remarkable 16.5% surge in sales, reaching €252 million in the 2023 fiscal year, following a 14% increase in the previous year. The Ballymun store has emerged as the company’s best-performing globally by revenue. The positive results are attributed to the introduction of new Plan & Order Points across the country, enhancements to the Ballymun store, and substantial growth in online business.
Online purchases have seen a notable uptick, constituting 33% of total sales, up from 29% in the preceding year. In a significant shift, IKEA Ireland sold more sofas online than through its physical stores in 2023. The Click and Collect service experienced substantial growth, with 644,000 products ordered online for collection, more than double the previous year.
While online trends continue to evolve, the IKEA store in Ballymun experienced a 4% increase in physical visitors, totaling 3.2 million. The restaurant at the store remained popular, serving over 3.6 million meatballs and 105,000 children’s meals. Notably, 41% of all meals served were plant-based.
The company’s strong performance, coupled with global declines in commodity and transportation prices, has enabled IKEA to implement permanent price reductions on over 250 products. The focus on affordability aligns with IKEA’s commitment to meeting customer needs in challenging economic times.
In response to changing customer behaviours, IKEA has expanded its physical presence in Ireland, now offering six locations for customers to engage with the brand. New Plan & Order Points have been established, providing free design consultations in various locations, including Naas, Cork, Drogheda, and St Stephen’s Green in Dublin, with further expansion planned in 2024.
With a strategic emphasis on kitchens, IKEA has significantly increased its kitchen design team, hiring 46 co-workers, including 22 expert kitchen installers. The number of IKEA pick-up points has also grown from two in 2021 to 11 today. To enhance delivery services, IKEA Ireland will open its first Irish Customer Distribution Centre in 2024, aiming to reduce delivery times and improve stock availability, creating 120 jobs.
In addition to business performance, IKEA has focused on sustainability initiatives, including a buy-back and re-sell scheme, witnessing a 60% year-on-year increase with 2,717 pieces of furniture repurchased. IKEA’s wind farm in Leitrim produced four times the electricity consumed by the company, and further investments in offshore wind projects are planned.
The commitment to employee well-being is evident through pay increases, with hourly-paid co-workers receiving the new €14.80 living wage from January 2024. Salaried co-workers will see an average 5% pay increase. In recognition of the sales performance, eligible team members will receive a bonus, ensuring a festive season reward. Additionally, IKEA Ireland will allocate €450,000 through the “Tack!” loyalty pension program. The co-worker turnover rate has significantly decreased to 28%, down from 40% in the previous year.
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