IKEA UK’s revenue up 5.8% to £1.8 billion in 2017.
Costs up 13% due to Brexit-driven collapse in the pound.
UK CEO says IKEA will “continue to invest” in the UK.
LONDON — Brexit pushed up IKEA’s UK costs by 13% last year, the furniture giant has said.
IKEA UK’s annual results, released on Tuesday, show a big jump in costs due to the declining value of the pound after Britain’s vote to leave the European Union in June 2016. The pound fell to a 31-year-low against the dollar the day after the referendum and a later dropped to a 7-year low against the euro.
CEO Gillian Drakeford said in a statement: “The Brexit vote has been on everyone’s lips and the devaluation of the Pound has been a challenge for many businesses.
“As we import a lot of our products from overseas, this increased our costs by 13.7%. To keep our range accessible and affordable for the many, we absorbed most of these costs, increasing prices by just 3.6%.”
Drakeford said IKEA will “continue to invest” in the UK and has a “bold and positive” vision to “increase our share of the UK home furnishing market by 2027, to 15%.”
“It won’t be easy, but we’re …read more
Source:: Businessinsider – Finance