New figures lodged by Ikea Ireland Ltd show that pre-tax profits at the company’s only Irish store last year jumped by 22% going from €5.8m to €7.1m. The accounts show that the increased splurge on the likes of Ikea’s Lack tables and Expedit shelving units helped increase revenues by 8%, from €103.9m to €112.7m.
In a sure sign of the turnaround in the economy, the numbers going through the doors of Ikea in Ballymun last year jumped by 100,000 from 2.3m to 2.4m.
The busier tills at Ikea last year also resulted in the company employing more, with headcount going up by 55 from 412 to 467. That, in turn, contributed to staff costs increasing by 36% to €13m.
Ikea Dublin store manager Marsha Smith said yesterday: “We are pleased to have seen positive growth in Ireland in financial year 2014.”
“What is really encouraging is that this growth has come from our existing store, not relying on a bricks and mortar expansion.
“Over the past year, we have been focused on really understanding how our customers live at home here in Ireland, and presenting our unique product range in a relevant and inspiring way in the store.
"We have continued to invest in making it easier for our customers to shop with us, including launching a new kitchen system, Metod, which saw the kitchen department rebuilt and co-workers trained to deliver a new, more convenient service to customers.
“We are thrilled that these investments have resulted in another year of growth. Looking ahead, we have put a renewed focus on improving the in-store shopping experience for our customers to ensure that every visit to Ikea Dublin is convenient and enjoyable.”
On the prospect of opening any new Ikea stores in the Republic, an Ikea spokesman said: “No further sites in Ireland have been identified at this point in time. However, we continue to review of expansion strategy in Ireland on an ongoing basis.”
The 2014 performance represents a further improvement on Ikea’s performance here after the business returned to profitability in 2013.
The Dublin outlet — which is equivalent in space to five and a half soccer pitches — contains 9,000 home furnishings, a 550-seater restaurant, a food hall and creche, along with 1,850 parking spaces.
According to the directors’ report, “the directors are satisfied with the results of the company for the year. The directors anticipate that the level of activity and profitability in future years will continue to be in line with expectations.”