The Inter IKEA Group has reported a 5.3% drop in IKEA retail sales revenue for the financial year 2024 (FY24), which totalled €45.1bn ($49.3bn) - down from €47.6bn in FY23.
The company attributed the decline primarily to its strategic decision to lower prices across its global markets, due to the economic downturn and a contracting home furnishing market.
Inter IKEA Group CEO Jon Abrahamsson Ring said: "In FY24 we substantially lowered prices across all 63 markets, making IKEA more affordable for many people.”
The fiscal year saw a positive trend in customer engagement, with in-store visitation increasing by 4.5% and online visitation by 21%.
This rise in traffic, coupled with growing consumer demand, led to a higher volume of products sold.
Most of IKEA's sales continued to be in-store, accounting for 71% of the total, while online transactions comprised 26%.
During FY24, IKEA expanded its physical presence by opening 56 new customer meeting points, including three full-size stores, eight smaller stores, and 44 pick-up and order points.
The brand made significant strides in Colombia, launching two stores and an e-commerce platform.
The retailer’s commercial focus for FY24 is centred on home storage solutions, with the PAX wardrobe system, a longstanding favourite, undergoing innovation.
Jon Abrahamsson Ring added: “I want to express my heartfelt thanks to our 216,000 dedicated co-workers around the world who made all of this possible. Their relentless hard work and commitment throughout FY24 have resulted in all of the above successes and much more. Together, we make IKEA more affordable, accessible and sustainable.”
In July 2024, the Ingka Group, owner of IKEA stores worldwide, gained the approval of the Science Based Targets initiative (SBTi) for its science-based targets for reducing greenhouse gas emissions.
