Ikea’s European business is showing signs of improvement as it reports a 3.6% jump in like-for-like sales for its financial year.

The company’s total sales for the year ending August increased by 5.9% to €28.7bn (£23m) on the back of better European sales and a surging Chinese market.

Ikea president and chief executive Peter Agnefjäll said: “The Ikea group keeps growing and I am happy to see an increased growth in all our sales channels; in existing stores, in the opening of new stores and online.

“We continue to see positive signs in consumer spending and it’s a great joy to report growth in almost all our markets, not least in the challenging markets in Southern Europe.”

Agnefjäll adds the retailer has identified “great opportunities” for continued growth because the company is “still small in many markets”.

Ikea revealed in the financial update that it aims to make sustainability affordable and attractive and is in the process of investing money into energy saving products including LED lighting to help customers reduce energy bills and live more sustainability.

Previously Ikea has reported that sales at Ikea UK grew 3.1% to £1.27bn in the year to August 31, 2013 and the furniture giant is hoping to double turnover and market share by 2020.