Strong growth for IKEA sales as the importance of life at home continues to increase
Ingka Group today announced strong IKEA retail sales of EUR 37.4 billion for the financial year 2021, an increase of 6.3% compared to last year (EUR 35.2 billion in FY20). Despite the challenges posed by the pandemic, the company continues to invest in becoming more accessible digitally and physically, more affordable and truly sustainable - to better meet the needs and dreams of its customers.
The pandemic has impacted the already fast-changing retail environment with restrictions and closures, leading Ingka to accelerate its digital transformation. Transforming stores to serve also as fulfilment units, as well as a revamp of IKEA.com and further roll-out of the IKEA app, led to an increase in the share of online sales from 18 percent to 30 percent.
“I’m really proud of the past year – we have grown as a business, as leaders and as people. Despite leading in the unknown, we continued to show incredible commitment and entrepreneurship with a clear ambition to create a better IKEA. All IKEA colleagues are a part of this success and as times continue to be challenging it’s important that we continue to keep the spirit of optimism and courage,” said Jesper Brodin, CEO, Ingka Group.
Ingka Group continued to invest in expansion and innovation, offering more customers the ability to choose when, where, and how they want to engage with IKEA. The company has opened its first store in Slovenia and an additional of 25 new IKEA locations*, including innovative green city stores in Vienna and Tokyo. The IKEA Xuhui store in Shanghai was transformed into a new retail concept that offers customers meaningful experiences, interactive events and social co-creation. Upgrading stores with smart solutions and improving fulfilment have led to quicker lead times while in many markets customers can now use the IKEA app to scan products and checkout faster.
Throughout the last year, the way people live, work and socialise has dramatically changed and the need for multifunctional and clutter-free living spaces has increased. The company sees a higher demand for workplace furniture, outdoor furniture and storage solutions.
“We are humble about supporting hundreds of millions of people to create a better life at home when they needed it the most, using our insights and knowledge. Our most recent research, for example, tells us that people who feel positive about their homes were much more likely to see positive mental health impacts. As a home furnishing retailer, we are humbled to contribute to making such a difference for so many people,” said Jesper.
Ingka Group continues to take action to become climate positive by 2030 and has committed to invest an extra an extra EUR 4 billion in renewable energy projects to further reduce its climate footprint and contribute towards limiting the global temperature rise to 1.5°C. In addition, the company is the founding member of the UNFCCC Race to Zero – Retail Campaign together with H&M, Kingfisher and Walmart, aiming to drive greater climate action in the retail industry.
Inter IKEA Systems B.V., which is the owner of the IKEA concept and the worldwide IKEA franchisor, also announced today total IKEA retail sales of EUR 41.9 billion across all 12 groups of franchisees.
Read more about how life at home is changing in the newly released IKEA Life at Home Report 2021.
*Including stores, IKEA shops and IKEA planning studios.
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- The (financial) information in this press release is unaudited, Ingka Holding’s audited financial statement will become available through the Dutch Chamber of Commerce.
- Fiscal year: 1 September 2020 - 31 August 2021.
For further information, journalists and media professionals can contact us at press.office@ingka.com or by calling +46 70 993 6376
Ingka Group (Ingka Holding B.V. and its controlled entities) is one of 12 different groups of companies that own and operate IKEA retail under franchise agreements with Inter IKEA Systems B.V. Ingka Group has three business areas: IKEA Retail, Ingka Investments and Ingka Centres. Ingka Group is a strategic partner in the IKEA franchise system, operating 390 IKEA stores in 32 countries. These IKEA stores had 706 million visits during FY20 and 3.6 billion visits to IKEA.com. Ingka Group operates business under the IKEA vision - to create a better everyday life for the many people by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford it.
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