IKEA is set to release its FY23 Annual Summary in early 2024. Credit: Alex Millauer via Shutterstock.

IKEA US has announced a $54.5m bonus payout to employees and reduced prices on hundreds of its products.

The company said the price cuts and bonuses were made possible through a ‘record year’ in sales in financial year 2023 (FY23).

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During FY23, IKEA US said it surpassed $6.3bn in total sales – equating to 6.6% in revenue growth. The online platform of the company also witnessed a 3.3% surge in e-commerce and a 6.3% increase in online visitation.

Lower prices, higher accessibility

In an effort to enhance affordability, IKEA US said it is implementing strategic price reductions on a myriad of products. 

Items such as the BILLY bookcase will be discounted by 20% or more, with additional promotions throughout this month, including the ’24 Days of Deals’ and the company’s annual Winter Sale.

The brand said its commitment to accessibility extends beyond price reductions. Following a $2.2bn investment, IKEA US has expanded its presence, introducing new locations and pickup points in San Francisco, California, Arlington, Virginia, and Southlake, Texas, with plans for further growth in Fairfax, Virginia, Gaithersburg, Maryland, and Katy, Texas.

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‘One IKEA Bonus’ for employees

IKEA US has unveiled the ‘One IKEA Bonus’ programme, disbursing a total of $54.5m to employees across two-thirds of its US units. 

Neena Potenza, HR chief officer, emphasised the significance of investing in employees, stating: “Our co-workers are the heart of IKEA and our success in the US is a reflection of their commitment to our values and vision.

“By investing in our people, we are building an IKEA for the future. It is important that coworkers at all levels can be recognised and rewarded. Not only is it the right thing to do, but it is good for our business.”

In addition to this bonus payout, IKEA US announced its participation in the Tack! loyalty programme, contributing to employees’ pension funds. 

The company also said its upcoming FY23 Annual Summary, scheduled for early 2024, will provide a comprehensive overview of sustainability and equity updates for IKEA.