IKEA Canada reports steady sales of $2.32B, with strong online growth in 2020
Burlington, ON – Today, IKEA Canada announced a steady sales performance of $2.32B for the financial year ending August 31, 2020, despite the economic and public health challenges posed by COVID-19. Detailed in the company’s 2020 Summary Report, total sales decreased by 8.7 per cent from the previous year, while online sales saw a significant lift at 41.9 per cent for a total of $370.74M. During a year when life at home was in focus for many Canadians, visits to IKEA.ca and the IKEA app increased by 52 per cent – a total of 178.5M.
“At IKEA, we are driven by a simple, yet powerful vision to create a better everyday life at home for the many and this has never been more meaningful than it is today,” said Michael Ward, CEO and Chief Sustainability Officer, IKEA Canada. “As we close one of the most extraordinary years in recent history, I am proud to reflect on the resilience of our business, how we led from our purpose and the togetherness, entrepreneurship and leadership of our co-workers across the country.”
At the peak of the pandemic, all 14 IKEA Canada stores were closed for nearly three months, shifting sales online. To meet this new ecommerce demand, IKEA Canada accelerated efforts to become more accessible and affordable to customers by optimizing central and store fulfilment networks and enhancing its digital solutions and services. Stores nationwide were transformed into fulfilment hubs, leveraging in-store warehouse footprints and logistics capabilities to fulfil local orders, in turn increasing capacities, reducing lead times and lowering delivery carbon footprint.
In addition, IKEA Canada expanded its offer of relevant services with contactless Curbside Click & Collect and remote planning and design, and introduced a network of Collection Points, enabling affordable pick-up in the metro areas of Toronto and Montreal. Downloaded more than 700,000 times, the retailer’s new, shoppable app provided home furnishing inspiration at a time when life at home has never been more important. As home continued to evolve – from a workplace, to a school and even a gym - IKEA helped customers transition their homes through relevant solutions, inspiration and unique insights on life at home.
“It has been a privilege to be part of our customers’ homes during a year when they need it most. Taking what we’ve learned, we are creating an IKEA that is faster, more agile and ready to meet the new dreams and needs of our customers,” said Michael Ward, CEO and Chief Sustainability Officer. “We will transform our business to be ever more accessible to our customers no matter how they choose to shop with us, we will become more affordable across our total offer including services and we will take a leap when it comes to enabling even more Canadians to live a more sustainable life at home.”
In the coming year, IKEA will accelerate efforts in Canada to tackle unsustainable consumption and climate change and will launch initiatives to inspire Canadians to live a better everyday life within the boundaries of the planet. With the goal to be fully circular and climate positive by 2030, IKEA will extend the life of secondhand furniture through its Sell-back program, innovate its product offer to help customers save water, energy and waste, reduce food waste across IKEA Restaurants and introduce menu options that are better for the planet, including the plant ball in Spring 2021. To complement the growth of its online business, by 2025, IKEA will aim for 100 per cent of home deliveries across Canada to be made by EV or other zero-emission transportations.
Throughout the evolving situation with COVID-19, IKEA Canada has prioritized health and safety, taking care of its 7,900 co-workers nationwide and supporting local communities most impacted by the pandemic. With people at the heart of the IKEA business, the retailer was proud to maintain all co-worker employment throughout its temporary store closures and beyond. IKEA also introduced enhanced co-worker support for both physical and mental health and well-being, new development programs, flexible Wellness Days and a Learning@Home initiative.
To be there for communities most impacted by COVID-19, IKEA Canada committed $2.3 million in emergency relief, including product donations and financial aid to vulnerable communities including refugees, homeless, children and BIPOC communities, $350,000 in IKEA Food to local food banks and 240,000 N95 masks donated to healthcare facilities.
To learn more about how IKEA Canada navigated the unprecedented past year, including fiscal results, community efforts, sustainability commitments, the new role of the home and future plans for transformation, visit the IKEA Canada 2020 Summary Report.