Published 10 October 2024 • Inter IKEA newsroom
IKEA continues to lower prices for customers
In financial year 2024 (FY24), IKEA sales amounted to EUR 45.1 billion and Inter IKEA Group increased its efforts to make IKEA more affordable for the many people.
Today, Inter IKEA Group announces total IKEA retail sales* for financial year 2024 (FY24)** of EUR 45.1 billion, a decrease of 5.3% (4.0% when adjusted for currency impact) compared to FY23. This is mainly due to lower prices. The result was achieved despite a struggling global economy and shrinking home furnishing market.
“In FY24 we substantially lowered prices across all 63 markets, making IKEA more affordable for the many people,” says Jon Abrahamsson Ring, CEO of Inter IKEA Group.
As a result of the price decreases IKEA saw an upward trend both in store visitation (+4.5%) and online visitation (+21%), while volumes are stable. In the past two years IKEA has invested heavily in its omnichannel experience to make it easier and more convenient for customers to shop. We are now seeing the positive results of this investment.
In FY24, IKEA opened 56 new customer meeting points in existing and new markets. Among these were three full-size stores, eight small stores and 44 plan and order points. One highlight was the expansion of retail operations in Colombia with two stores and e-commerce.
The commercial focus for FY24 was storage across the home and in the past year IKEA helped millions of customers organise their homes. The PAX wardrobe system - the IKEA flagship storage solution - has been a much-loved product for several decades. To further improve PAX, IKEA has now introduced a new foldable PAX frame that can be assembled in half the time and in much smaller spaces.
Other product innovations in FY24 saw the creation of better mattresses that use fewer materials yet offer more comfort at a lower price. The new design incorporates an improved spring construction requiring less foam, which helps to reduce the environmental footprint.
The launch of the MÄVINN collection has also been well received. The collection celebrates craftsmanship using all natural materials and traditional artisan techniques. Every item is made by social businesses across Asia and provides employment for people from vulnerable groups.
“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," concludes Jon Abrahamsson Ring.
Read more about FY24 here.
*Total sales include sales of IKEA products, food and services by the 12 IKEA franchisees.
**The IKEA financial year runs from 1 September to 31 August.