Ikea’s UK profits plummeted 58% in its last financial year.
According to figures filed at Companies House, profits dropped to £17m in the year to August 2009 and sales slid 1.4% to £1.23bn.
Ikea has continued to face growing competition in the UK from DIY retailers who are moving more into the home furnishings marke, as well as supermarkets. It has also suffered because of fewer people moving house.
Ikea’s UK managing director Martin Hanson said that the Swedish retailer was using cash to invest in new stores.
“One of the advantages of being a global brand is that we can build our business for the long term. In spite of the economic climate we have not cut our investments and will continue to invest,” said Hanson.
Ikea now has 17 stores in the UK.