Profits at Ikea Ireland more than doubled last year to €16.2 million.
This occurred despite what the company called a “challenging economic backdrop”, as consumer confidence remained subdued due to continued pressure on household spending. This meant sales inched up just 0.36 per cent to €247.3 million.
The Swedish retailer said the “strong financial performance” for the year to August 31st, 2025, came on the back of a return to “more normalised levels of investment” after it had put €12 million into a central distribution centre in 2024.
However, operating profits still lag the €22.4 million reported in the year to August 2023, when the company had sales in its Irish outlets of €252.4 million.
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Ikea Ireland interim chief executive Mostafa El Garaa said the group navigated a “challenging economic environment” during the year. “This positive momentum enables us to keep investing in Ireland,” he added.
He said last year enabled “targeted investments” aimed at enhancing Ikea’s accessibility for customers across Ireland. The opening of a Waterford “plan and order” point marked the brand’s seventh of its kind and its largest outside of Dublin.
Plan and order points are dedicated to kitchen, bedroom and livingroom planning, offering tailored design consultations and click and collect services.
Ikea said it had also improved its service offering last year, including upgrades to planning, assembly and installation services. El Garaa said that meant overall service uptake grew by 21 per cent. Assembly and installation services increased by 9.5 per cent, with demand for planning, interior design or measuring services up by 14.5 per cent.
Following the opening of its central distribution centre in Rathcoole in April 2024, Ikea has expanded its operational capacity, resulting in a 23 per cent increase in centrally fulfilled customer orders.
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“This contributed to growth in online sales and improved profitability,” said El Garaa. “Online sales rose by 10.4 per cent year‑on‑year and now represent almost 40 per cent of total sales.”
The group also upgraded its click and collect offering, introducing same-day collections. The network of mobile pickup points was also expanded and now encompasses 29 locations for furniture collection across Ireland.
Twenty-one of these are located in Tesco car parks, while there are an additional 600 small shops for the collection of smaller home furnishing accessory items. The group said the initiatives “significantly improve customer accessibility and convenience”.
Ikea’s buy-back and resell scheme meant 161,000 second-life items sold and an increase of more than 50 per cent in online reservations. To further extend product lifespans, 29,577 spare parts were provided free of charge.
The retailer ended the financial year with 86 per cent of customer deliveries completed by electric vehicles, an increase from 50 per cent in 2024.
The group also committed about €550,000 in co-worker development and wellbeing in 2025. This included increasing the hourly pay rate to €15.25, alongside enhanced benefits such as neonatal, kinship, and carers’ leave, it said.
