Ikea’s tills ring up €2 million in sales per week at its Dublin store

HOME furnishings giant Ikea recorded average sales of more than €2 million per week at its Dublin store last year to record pre-tax profits of €11.4 million.

In accounts for its first full year at its Ballymun outlet, Ikea Ireland recorded revenues of €110.7m in 12 months to the end of August last. This compared to a turnover of €15.57m in the previous financial year which accounted for only 36 days following the store’s opening on July 27, 2009.

According to the directors’ report for 2010 the increase in turnover is due to the company trading for a full year for the first time this financial year.

“Ikea was affected, like many other retailers in Ireland, by the slowdown in the economy. We continue to invest in our prices in the long term and to improve the shopping standards for our customers,” the directors add.

The directors said the financial services crisis, and its spillover into the real economy has adversely affected the Irish retail environment and trading of the company.

“However, these threats are not considered to be significant, and it is the opinion of the directors that Ikea will continue to gain market share during this slowdown,” they added.

The directors state no new stores are planned for this year but say the long- term strategy is to expand.

The Dublin outlet — which is equivalent to five and-a-half soccer pitches — contains 9,000 home furnishings, a 550-seater restaurant, food hall and creche, along with 1,850 car parking spaces.

The pre-tax profit last year of €11.4m compared with a pre-tax loss of €8.3m in its first year, which was related to start-up costs. Cost of sales last year jumped from €10.3m to €71.8m with the firm’s administrative expenses going from €11.2m to €26.7m.

The company recorded an operating profit last year of €12.2m compared to an operating loss of €6m in its first year.

Figures show the company employed 452 people last year and staff costs totalled €9.4m against €4.5m in 2009. Figures show Ikea Irelands land and building was valued at €78.5m at the end of August last year.

The average daily footfall of more than 15,500 in the early weeks of the operation resulted in Ikea hiring an extra 100 temporary staff.