IKEA US Announces FY15 Results
IKEA is growing while making investments in co-workers and initiatives to reduce impact on the environment
(Conshohocken, PA – November 5, 2015) IKEA US announced today that the company continued to grow in FY15;[1] IKEA US store sales increased by 4.5 percent and total sales – including ecommerce – increased by 8.6 percent outperforming both retail and home furnishing sectors.2 Additionally, IKEA US wind farm investments in Hoopeston, Ill and Cameron, TX are expected to generate between three and four times the amount of energy IKEA used in its US operations during FY14.
“We are pleased that IKEA US continues to grow. Our investment in our co-workers’ new minimum wage structure and our positive environmental programs demonstrate IKEA is a great place to work as well as a business that positively impacts our planet,” commented Lars Petersson, IKEA US President. “We also see great opportunities for significant future growth as we expand the number of U.S. stores 12 percent by fall 2017.”
IKEA US investment in its co-workers was exemplified when it announced in June 2015, it would once again raise its minimum hourly wage in existing stores, effective January 2016. This follows the new minimum wage structure that was implemented on January 1, 2015, which resulted in a 4 percentage point reduction in turnover by the end of FY15.
IKEA is a Leader in Life at Home
The IKEA vision is to create a better everyday life for the many people, which includes offering products that are well-designed, functional, and cost-efficient. During FY15, this was demonstrated by the following actions and programs:
- IKEA lowered the prices on a considerable number of articles including some of the best-selling IKEA products like the MALM storage bed and BRIMNES wardrobe.
- With a focus on a sustainable life at home, IKEA became the first major U.S. retailer to convert to selling only LED lamps and replacement bulbs.
- During FY15, IKEA completely changed its kitchen offer. The new range of kitchens, SEKTION, offers customers advantages such as – improved integration of lighting into drawers, new drawers within drawers and more options to customize cabinet interiors.
Business Growth & Expansion
- As online shopping is growing among all customer sectors; IKEA Ecommerce experienced strong growth, up 23%.
- Life has become busier for most people and IKEA home deliveries has seen an increase of 73% in the last two years.
- Growth in the bed and bath departments contributed nearly half of total IKEA US sales growth.
- IKEA loyalty shopping has proven successful resulting in IKEA FAMILY memberships at 9.8 million in FY15, a 43% increase from FY14.
- FY15 saw improved IKEA food menu choices (seasonal, well priced) including the introduction of new healthier and more sustainable options; the IKEA food sector was up 5%.
Great Place to Work
- IKEA cares about its co-workers and the lives they live. With a focus on more predictable scheduling, IKEA US provides co-workers with their schedules three weeks in advance, more than required by federal legislation.
People & Planet
- IKEA aims to produce as much renewable energy as the company consumes in its operations by 2020. To that end, IKEA continued to invest in renewable energy in FY15 by expanding solar installations and investing in wind farms in the U.S. Today, 90% of IKEA US units - store, distribution centres and offices - have solar installations.
[1] September 1, 2014 – August 31, 2015
2 During FY15, U.S. retail sector sales had an annual increase of 2.2 percent and the furniture and home furnishing stores segment saw an annual increase of 3.7 percent showing IKEA is outperforming both retail and home furnishing sectors. Source: U.S. Department of Commerce.
For further information, please contact:
Mona Astra Liss, US Corporate PR Director, Mona.Liss@IKEA.com,
610.834.0180, ext. 5852
About IKEA Group
The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. There are currently 328 IKEA Group stores in 28 countries. Additionally, there are 40 IKEA stores run by franchises. There are 41 IKEA stores in the US. In FY 15, IKEA Group had 771 million visitors to the stores and 1.9 billion visitors to IKEA.com. IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment. For more information, please visit www.IKEA.com, facebook.com/IKEAUSA, @IKEAUSANews, @IKEAUSA, http://pinterest.com/IKEAUSA/, www.youtube.com/IKEAUSA, www.theshare-space.com, www.theshare-space.com/en/Blog
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