Retail Week can reveal that Ikea's UK like-for-like sales grew by 4 per cent in the year to September 30. Total UK turnover increased by 6 per cent to£1.07 billion.
But Mid-Europe regional manager Peter Høgsted admitted that despite the retailer's industry-beating performance, Ikea's UK growth has slowed. He said: 'Our 6 per cent growth must be compared to very strong growth the year before - which was 15 per cent like-for-like - and it has become slower, especially in the past six months.'
Høgsted is planning to fight back to ensure that Ikea's growth remains positive, and has put in place a long-term strategy. 'We have decided to use this time to trade as well as possible. We are preparing for a change in times ahead,' he said.
The£150 million investment will be spent on increasing sales capacity, adding mezzanine floors and improving parking and in-store safety.
Ikea plans to open between 20 and 25 stores in the UK in the next decade. Høgsted will utilise the retailer's land bank to build 10 stores by 2008.
Ikea will debut its compact store format in Milton Keynes in January. This could be the blueprint for a move into high street locations. The retailer is also planning the soft launch of a transactional web site in the UK within the next 12 months (RW, August 22)
Høgsted, who retains his position as UK managing director, was recently promoted to the position of Mid-Europe regional manager with additional responsibility for Slovakia, the Czech Republic, Hungary and Poland
Urs Meier has been drafted in as a second deputy managing director for Ikea UK.
Meier, who was Ikea Austria managing director, will work alongside the UK's existing deputy managing director John Olie and will spearhead Ikea's expansion into Ireland. He will take up the role on October 13.
Meier believes he is ready for the UK. He said: 'It [the UK market] is quite tough, but I have experience from Austria. It [Austria] had one of Europe's toughest economic downturns in the past two to three years. I can contribute to the UK with my knowledge gained during this period.'
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