Ikea UK & Ireland has reported a like-for-like sales rise of 1% to £1.2bn for the year to August 31, 2010.
This growth comes despite signs of decline in the home furnishings market, which shrank by 7.4% in 2009, according to Verdict Consulting. The market analyst firm also confirmed that Ikea took the lead in the home furnishings sector for the first time with a 6% share at the end of 2009.

Kitchen sales rose 11% during the period, coupled with a 1.4% market share uplift. Home storage increased by 11% year-on-year, while dining went up 9%.

The retailer, which has 18 stores across the UK and Ireland, recently launched a full service package for kitchens, offering planning, delivery and installation. Bathroom installation is now also available.

Ikea UK & Ireland country manager Martin Hansson said: "It has been another challenging year for us but despite the overall home furnishings market being in decline, we have delivered a small growth."

He added: "By focusing on two key areas - affordability and improved service levels - I am convinced we will continue to see stable, if not increased visitation to our IKEA stores over the coming period.

"I believe we will achieve growth by continuing to lower our prices. Compared to this time last year, our prices are already 5% lower across our entire home furnishings range. We also need to be even more relevant in our offer and continue to improve the shopping experience and service in our stores."

The company intends to launch a new and improved home delivery service in the first half of 2011, allowing customers to be able to choose from a wider choice of products online. More than 500 products will be added to some 3,700 articles currently available online, and these will mainly include bedroom textiles, lighting and rugs. A lower home delivery charge will also be introduced.

This is only the second time Ikea has released sales figures after the company publicly revealed its profits for the first time at the beginning of October.