IKEA has announced that its total retail sales reached EUR 45.1 billion for the fiscal year 2024 (FY24), marking a 5.3% decline from the previous year, largely due to price reductions aimed at making products more affordable. Despite a challenging global economy and a shrinking home furnishings market, IKEA managed to attract more customers by lowering prices across its 63 markets.
The company’s price reduction strategy resulted in a 4.5% increase in store visits and a 21% surge in online traffic, reflecting the brand’s emphasis on affordability. Jon Abrahamsson Ring, CEO of Inter IKEA Group, attributed these gains to IKEA’s sustained focus on lowering prices and improving accessibility for consumers.
This year, IKEA opened 56 new locations across existing and new markets, including three full-size stores, eight smaller stores, and 44 plan-and-order points. Notably, IKEA expanded its footprint in Colombia, adding two new stores and an e-commerce platform to cater to growing demand in the region.
IKEA’s commercial focus for FY24 centered on home storage, especially through its PAX wardrobe system, which has been a staple product for decades. The company introduced a new foldable PAX frame, designed for easier assembly in smaller spaces, cutting setup time in half. Additional product innovations included an improved mattress with fewer materials and enhanced comfort, part of an effort to reduce the company’s environmental impact.
The year also saw the successful launch of the MÄVINN collection, which celebrates traditional craftsmanship and sustainable design, employing artisans from social businesses across Asia.
“I want to express my heartfelt thanks to our 216,000 dedicated co-workers around the world who made all of this possible,” said Ring. “Together, we make IKEA more affordable, accessible, and sustainable.”
By investing in its omnichannel experience and expanding globally, IKEA aims to build on these results, continuing to prioritize affordability and sustainable practices in the coming years.