Ikea has had a strong year and is investing further in expansion and renewable energy. Affordable prices also remain a top priority for the retailer.
Emission-free delivery
Ingka Group, Ikea’s largest franchisee, saw turnover increase by 5.7% from 39.5 to 41.7 billion euros in the 2023 financial year. This growth is partly due to the opening of sixty new branches, including in Copenhagen, Madrid and San Francisco. The number of physical store visits increased by 7%, the share of online visits in the total number of visits increased from 25% to 26%.
The retailer, which is celebrating its eightieth anniversary, will increase investments in some of its largest markets: in the United States, the United Kingdom, France and Spain alone, the company plans a budget of more than 4.5 billion euros. Ingka Group will also invest 6.5 billion euros in renewable energy, of which almost four billion has already been invested. A quarter of orders worldwide are already delivered emission-free to their homes.
Betting on lower prices
In the Netherlands, Ikea’s turnover grew from 1.37 to 1.64 billion euros, a growth of 19.7% compared to 2022. Physical store visits increased by 22.1%. 28% of Dutch turnover came from online sales, a decrease of 2.9%. Ikea invested heavily in wages: in the past year, Dutch employees received at least 13% more.
“To keep our offering affordable for as many people as possible, we are now investing heavily in lowering the prices of our popular products – with a focus on storage products. “Affordability is a top priority for us – we will continue to focus heavily on this in the near future,” says financial director Sandra Schouten.
In Belgium, Ikea’s turnover increased by 16% to 1.208 billion euros. This growth was due to the strong increase in sales of kitchens (+12%) and food (+29%) and via click&collect (+97%). Next year, Ikea will invest as much as thirty million euros in Belgium, mainly in sustainability and omnichannel solutions. Further price reductions are also in order here.
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Ikea, which has had a strong year, is investing further in expansion and renewable energy. Affordable prices also remain a top priority for the retailer.