This year families changed kitchens into schools, bedrooms into workplaces, and backyards into amusement parks. Together we’ve rediscovered home as a place to work, relax and socialise.
“These are uncertain times. We’re all more careful with our wallets, and we’re spending more time in our homes. Our passion at IKEA is to help the many with functional home furnishing solutions at affordable prices,” says Inter IKEA Group CEO Jon Abrahamsson Ring. “Low price is more important than ever, and our lowest-price segment accounted for more than half of IKEA retail sales this summer. Making IKEA even more affordable is continuously one of our biggest opportunities for the future,” says Jon.
Online retail sales increased 45% this year, and the IKEA website welcomed four billion visits. E-commerce expanded to three new markets, including China – an important milestone. “The IKEA website, stores and other locations complement each other to create a great customer experience all the way around. We’re pleased about online sales growth, but also very happy that customers still love our stores. People want to touch and try our products or get personal help. As a result, we welcomed 825 million visitors to stores and opened 33 new locations this year,” says Jon.
IKEA continued work to reduce the climate footprint and pledged to invest EUR 200 million in renewable energy and responsible forestry. And IKEA continues to integrate sustainability into every step of the business – from raw materials and production through to IKEA customers’ homes. “IKEA makes the biggest impact by offering products that are both affordable and sustainable. For example, I’m extremely proud of our new plant-based ‘meat’ ball, which tastes great and has a really good price. But its climate footprint is just 4% of the traditional IKEA meatball,” says Jon
Together these efforts led to total FY20 IKEA retail sales of EUR 39.6 billion by IKEA franchisees, compared to EUR 41.3 billion in FY19 (including sales of products and services). “That’s less than last year, but retail sales recovered quickly. And online sales remain high even as stores re-open. Going forward we’ll continue our work to satisfy and exceed customer expectations in existing stores every day, as well as to innovate new solutions for a better IKEA,” says Jon.
During FY21, IKEA will expand to new markets like Mexico and the Philippines. Several locations will also open in existing markets. And there will be lots of great new products. “This was a year of homecoming. We’re proud to have made IKEA more affordable, accessible and sustainable for people around the world.” says Jon.