Ikea sales dip 5.3% in FY24 after cutting prices

Ikea has seen a 5.3% decrease in retail sales to €45.1bn (£37.7bn) for its 2024 financial year as it “substantially” lowered its prices across 63 markets. 

However, as a result of the price decreases, the retailer saw a 4.5% upward trend both in store visitation and a 21% increase in online visitation, while volumes are up with increasing consumer demands. 

In the past two years, Ikea has invested “heavily” in its omnichannel experience to make it easier and more convenient for customers to shop, including lowering the price of furniture deliveries. 

During the year, Ikea opened 56 new customer meeting points in existing and new markets. Among these were three full-size stores, eight small stores and 44 Pick Up and Order Points. One highlight was the expansion of retail operations in Colombia with two stores and e-commerce.

In the UK, the retailer is planning to open two new stores in the next year: in London’s Oxford Street and in central Brighton. 

Jon Abrahamsson Ring, CEO of Inter IKEA Group, said: “In FY24 we substantially lowered prices across all 63 markets, making IKEA more affordable for many people. 

“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.”