This was down 2.4pc from €252m reported in the retailer’s previous financial year.
The group said that it had invested more than €10m in lowering the prices of almost 3,000 items during its most recent financial year, which had contributed to this decline in sales.
“In a year of economic uncertainty, our priority was clear: stand with our customers,” Ikea Ireland’s chief executive and chief sustainability officer Peter Jelkeby said.
“In spite of our reduced turnover, continuing to lower prices remains our long-term priority,” he added.
Ikea also reported that it had noted a rise in demand as the year progressed and more price cuts were introduced, particularly in the kitchen, bedroom and children’s categories.
Today’s News in 90 Seconds – October 9th
Almost 36pc of the company’s sales were made online, up from 33pc a year earlier. This followed the opening of the group’s centre in Rathcoole, Co Dublin in April this year, the retailer’s first such centre in Ireland.
Previously, many of the orders made online by Ikea customers in Ireland were dispatched from the UK.
From next Monday, Ikea will also lower parcel delivery fees. Small parcels will be reduced to €6 from €10, while larger orders over €65 will be delivered for free.
Ikea has also opened six Plan & Order Points across the country in the past two years. These locations offer customers free design consultations.
It also launched nine mobile pick-up points at Tesco stores across eight counties. More than 20,000 orders were delivered through this service in the recent financial year, with more pick-up points set to open.
“We continue to dedicate our energy to our expansion plans and investing heavily to become more accessible,” Mr Jelkeby said.
“To complement our existing stores, we are laser-focused on continuing to innovate to reach more customers, with a network of new, smaller stores that offer different experiences, as well as new services that meet all of our customers’ needs – no matter where they live,” he added.
Ingka Group, the world’s largest Ikea franchisee, also reported total Ikea retail sales of €39,6bn in the year to the end of August, down 5pc compared to the previous financial year.
Globally, more than €2.1bn was invested in lowering prices of thousands of products. The retail giant also invested a further €1.3bn in revamping existing stores, expansion and digital development.
Meanwhile, Ikea UK revealed a slump in sales for the past year as under-pressure shoppers held off buying bigger-ticket items.
The UK arm of the Swedish homeware giant said the fall was also partly driven by price reductions to keep attracting customers hit hard by the higher cost of living.
The company revealed that retail sales dropped by 6.8pc to £2.3 billion for the year to August, compared with the previous financial year.
Ikea linked the drop to a “strategic decision to prioritise affordability” as it invested more than £117m into lowering prices over the year.