IKEA Canada grows sales by 8 per cent to $2.39 billion in 2018
Home furnishings retailer sees the beautiful possibilities for multichannel growth in 2018 Annual Summary Report.
November 9, 2018 (Burlington, Ontario) – Today, IKEA Canada announced sales of $2.39 billion for the financial year ending August 31st, 2018, an increase of 8 per cent on the previous year. Detailed in IKEA Canada’s 2018 Summary Report, the retailer saw accelerated growth online. Supporting its ambition to become the leading multichannel home furnishings retailer, web visitation on IKEA.ca jumped to 104 million customers, contributing to $241.5 million in eCommerce sales, an increase of 18.8 per cent.
“We’ve accomplished a lot in one year at IKEA Canada. We opened two new stores in Halifax and Quebec City, grew to 6,500 dedicated co-workers, introduced new ways to shop and strengthened our commitments to sustainability and diversity and inclusion,” said Marsha Smith, President, IKEA Canada. “We are proud of our growth this year, but we know the retail landscape is changing faster than ever. As we look toward the future, we’ll transform our business to create a more accessible and convenient shopping experience for our customers.”
This year, IKEA grew to 14 stores from coast-to-coast. Highly-anticipated openings in Halifax and Quebec City saw thousands of customers line-up – many overnight – to shop the new, locally-relevant locations. Amid a rapidly-changing retail landscape, IKEA grew in-store visitation to 30 million customers, an increase of 6.9 per cent. Meatballs were no exception to the successful fiscal year with IKEA Food sales growing by 13 per cent to $102 million.
To secure long-term growth, IKEA is transforming its business model, exploring new formats, optimizing its distribution networks and enhancing its digital tools and service offering. In 2018, IKEA opened CDC Vancouver – its first distribution facility in Western Canada. The company also invested in new ways to shop – including four new Collection Points in Ontario and Quebec - and expanded its service offer with the launch of TaskRabbit in-home assembly. To create a more flexible shopping experience, IKEA introduced a new 365-day return policy.
Taking a leading role in building a more sustainable future, IKEA made the bold commitment to phase out all single-use plastics from its range and food services by 2020. The retailer also announced its ambition to become a fully circular business by 2030, introducing new programs to help customers extend the life of IKEA products. Advancing its renewable energy program, IKEA installed solar panels at Edmonton and Calgary stores. Today, IKEA Canada produces approximately four times as much power as it consumes through two windfarms in Alberta, solar installations and geothermal energy sources.
With the goal to be one of Canada’s top employers, the company implemented guaranteed hours and four-week scheduling so co-workers can better plan their lives. Diversity continued to be a focus, with a strong emphasis on gender balance - 52 per cent of co-workers and 51 per cent of managers are women. To support a more gender-equal world, IKEA partnered with the Canadian Women’s Foundation to provide needed home furnishings to women’s organizations and joined a private-sector gender equality leadership coalition. The company also launched a national refugee employment initiative, helping refugees join the workforce, develop new skills and integrate into local communities. With the belief that equality is at the heart of human rights, IKEA raised the Pride flag at stores across Canada in honour of IDAHOT and saw co-workers walk in Pride celebrations nationwide.
“With increasing urbanization, new technology and digitalization, these are exciting times of change for IKEA,” said Marsha Smith, President, IKEA Canada. “As we build the IKEA of tomorrow, the driving vision of our late founder Ingvar Kamprad – to create a better everyday life for the many people – will continue to live on in everything we do.”
Experience IKEA Canada’s 2018 Summary Report in a new digital format here: IKEASummaryReport.ca/2018
ABOUT IKEA CANADA
IKEA Group is a leading home furnishing retailer with 357 stores in more than 29 countries worldwide, which are visited by 817 million people every year. IKEA Canada has 14 stores, an eCommerce virtual store, five Pick-up and order points and 17 Collection Points. Last year, IKEA Canada welcomed 30 million visitors to its stores and 104 million visitors to the IKEA.ca website. Founded in 1943, IKEA's business philosophy is to offer a wide range of products of good design and function at prices so low that as many people as possible will be able to afford them. For more information on IKEA Canada, please visit www.IKEA.ca.
For more information:
IKEA Canada, Public Relations Manager