IKEA Ireland stands with customers as it invests more than €10 million in lowering prices throughout financial year 2024
The price reductions focused on some of IKEA's most popular items. Almost 3,000 products1 were reduced, offering customers an average price reduction of 19% on these items.
In a year of economic uncertainty, our priority was clear: stand with our customers. In spite of our reduced turnover, continuing to lower prices remains our long-term priority. This is true to the IKEA vision.”
Peter JelkebyCEO and Chief Sustainability Officer, IKEA Ireland & UK
Despite the impact on FY24 revenue, IKEA Ireland saw an uptick in demand as the year progressed and more new lower prices were introduced, particularly in key categories like kitchens, bedrooms, and children’s IKEA.
As well as its focus on lowering the price of products, IKEA is committed to lowering service-related prices. From 14th October, IKEA will lower its parcel delivery fees: small parcels will now cost €6 (previously €10) or be delivered for free on orders over €65. Additionally, the charge for all other parcel deliveries will be set at a flat rate of €15, down from the previous range of €15–€19. This move complements the increased offer of free click-and-collect services2.
Moreover, IKEA continues to offer free in-store and online planning services, covering areas such as kitchens, bedrooms, and living room storage solutions, helping customers to plan and optimise their spaces.
With consumers looking for smart ways to save money, IKEA has seen continued success with its Buyback scheme, rewarding customers with an in-store credit. In FY24, a total of 3,200 products were bought back, a 20% increase compared to previous year, demonstrating the popularity of this part of IKEA's plans to enable a more circular economy.
Continued investment to create a more accessible IKEA Ireland
Despite economic challenges, IKEA Ireland is investing significantly to become more accessible. Over the past 24 months, IKEA has expanded its presence across Ireland, opening six new Plan & Order Points in key locations across six counties: Dublin, Cork, Sligo, Louth, Kildare, and Carlow, ensuring IKEA is more accessible than ever. These smaller stores provide customers with free, bespoke design consultations with experienced IKEA kitchen and bedroom storage experts.
As part of this improved customer experience, the retailer launched nine mobile pick-up points at Tesco stores across eight counties, with more to be rolled out. Across the year, over 20,000 orders were delivered through this new service.
We continue to dedicate our energy to our expansion plans and investing heavily to become more accessible. To complement our existing stores, we are laser-focused on continuing to innovate to reach more customers, with a network of new, smaller stores that offer different experiences, as well as new services that meet all of our customers’ needs – no matter where they live.”
Peter Jelkeby
Online sales continue to grow
The retailer saw the trend of growing online sales continue, with 35.9% of IKEA Ireland’s sales made online in FY24 (up from 33% in FY23). A key enabler to this increase was the retailer's newly opened 280,000 sq. ft distribution centre in Greenogue Logistics Park in south-west Dublin.
In addition to enhancing delivery capabilities, the new distribution centre has become a springboard for greener deliveries. With 22 charge points installed at the centre, a fleet of 25 electric vans has delivered 62,500 zero-emission deliveries across the country.
We want it to be as easy, affordable, and sustainable as possible for customers to shop with IKEA, whether they choose to do so in our IKEA stores, online, through our app, or with personal assistance from their home, and we are making strategic investments with this goal in mind. In the past year, we have widened the range of services on offer to customers, and it is now easier than ever to furnish your home with our fantastic product range wherever you are.”
Peter Jelkeby in summary of the year’s movements
Similar global picture
Ingka Group, the largest IKEA franchisor, which includes IKEA Ireland, today announced total IKEA retail sales of €39.6 billion a decrease of 5% compared to last year. Globally, IKEA also prioritised lowering the prices to customers by investing more than €2.1 billion across thousands of products across all markets. During the year, Ingka Group continued to deepen its market presence and reach more people by investing over €1.3 billion in revamping existing stores, expansion, and digital development.
The IKEA ambition is to deliver to the Paris Agreement and become net zero by reducing absolute greenhouse gas emissions from the entire value chain up and downstream by at least 50% by 2030 and 90% by 2050. The company has accelerated its investments into renewable energy and aims to invest €7.5 billion until 2030, where more than €4.2 billion has already been invested or committed to accelerating the transition to a net-zero society.
Notes to Editors
The (financial) information in this press release is unaudited. Full financial result and audited financial statement for IKEA Ireland Limited will become available during the first half of 2025. The 2024 financial year refers to 1st September 2023 – 31st August 2024.
1 The price reductions have focused on some of IKEA's most popular items, for example the SAMLA box 45l reduced from €8 to €6, MALM Chest of 3 drawers from €125 to €99 and IKEA 365+ frying pan from €19 to €15 – significantly boosting affordability.
2 IKEA offers the following Click and Collect offers:
- Collect from IKEA Ballymun or IKEA Carrickmines: Free on all orders
- Mobile pick-up points (Tesco Car Parks): Free for orders over €200, €15 for all other orders
- DPD pick-up points: Free for orders over €100, €2.95 for all other orders