Ikea UK sees sales rise as new supremo arrives

Ikea UK has appointed a managing director to replace long-standing boss Goran Nilsson, and reported a healthy rise in sales.

Peter Hogsted, former managing director of Ikea Denmark, was introduced to staff this week and will officially take the helm on September 1.

Nilsson has been head of Ikea in Britain for more than five years, and will continue to be involved in UK expansion in a part-time role. He said: 'I have spent 12 years abroad, and I am taking a break.'

According to accounts filed at Companies House, sales at Ikea's UK arm increased by 10 per cent to£880 million in the year to August 31, 2002.

Nilsson said investment and a fall in sterling had hit pre-tax profits, which fell from£113 million to£103 million for the period. He said he had been pleased with sales in the current year and believed consumer confidence had risen since March.

Nilsson said he was optimistic about talks with the UK Government on planning constraints, which have forced Ikea to hold back its expansion. He expected Ikea to table another two to four planning applications by the end of this year, in addition to the two already in play and the new store expected to open this autumn in Cardiff.

Ikea plans to invest a further£1 billion in 20 new UK stores over the next 10 years.