Ikea's UK stores lost £33million in just three months last year, after it was forced to close due to lockdown restrictions.
The world's largest furniture retailer said sales tumbled more than 10% to £1.9billion in the year to August 31, even though online sales increased by nearly a third.
Ikea admitted that it had struggled to meet demand for home deliveries despite turning stores into distribution centres for online orders during the high street lockdowns.
But the chain said it has plans to return to the high street with a new "Buy Back" venture, after the Prime Minister issued a provision April 12 reopening date for non-essential retailers.
The start of the scheme was postponed in November due to the pandemic.
It will offer customers cashback vouchers for a range of second-hand Ikea items including bookcases, tables, chairs and chests of drawers.
The chain said it will help those hoping to shift any unwanted work from home furniture as they return to the office.
"Last year, Ikea was piloting Buy Back in our Edinburgh and Glasgow stores to explore how we support our customers to lead more sustainable lives, step by step," said Hege Saebjornsen, country sustainability manager for Ikea UK and Ireland.
"Irrespective of the trial being shorter than planned due to store closures, we believe strongly in the idea and moreover, believe that providing customers with more convenient ways to give their products a second life is the right thing to do."
He said Buy Back would launch as soon as possible after restrictions on non-essential shops are lifted, which the government has said will be some time after April 12 in England.
In Scotland Ikea stores could open after April 26. In Wales some non-essential retail may start to reopen from March 15. Northern Ireland has not yet published a roadmap for reopening.
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Peter Jelkeby, the UK and Ireland country retail manager for Ikea, added: "We had a good performance before lockdown and I am proud of how resilient we have been."
Ikea said customers showed particular interest in sound absorbers and speakers, garden furniture, artificial plants and chairs and desks designed for gaming over lockdown last year.
Enthusiasm for Netflix series Tiger King prompted purchases of animal-themed wall art and sheepskin rugs, the firm added.
Ikea said the rapid increase in home working resulted in a 322% increase in small desk demand in June, while there was a 136% increase for its Markus office chair.
The Swedish retailer's UK stores remain shut due to coronavirus restrictions.
