The companies behind IKEA’s UK retail property and distribution services have reported a mixed performance as sales rose in one but declined in the other.

According to IKEA Properties Investments, which provides rental units for IKEA retail businesses, latest accounts for the year ended 31 August 2023, total sales dipped by 10.9% to £82.6m from £92.8m in 2022. Pre-tax losses resulted at £190.2m, down from a profit of £145.6m.

Stated in its report, the company said that the decrease in turnover was largely attributed to the closure of its Edmonton store rented to IKEA as well as a drop in the re-investment recharges relating to property, plant and equipment.

As for IKEA Distribution Services, which provides warehousing, distribution and logistics services to the supplier of the IKEA retail businesses, latest accounts for the same period saw total sales rise 22.6% to £146.1m from £119.1m. Pre-tax profit resulted at £6.7m, up from £5.5m the previous year.

Stated in its report, the company, which operates a large distribution warehouse in Doncaster, a customer service centre in Peterborough and manages a subcontracted parcel unit in Corby, said that it closed its two warehouses in London during the period, which have been replaced by a new customer distribution centre in Dartford.

IKEA UK recently reported an 11.9% growth in sales and turnover of £2.46bn, supported by increases across in-store visitation (+2.2%), online sales (+19%), remote sales (+24%) and click & collect purchases (+48%). Read more here.