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Ikea has posted sales of €47.6bn (£41.1bn), up 6.6% compared with FY22, for the year ended 31 August 2023 despite facing what it called the “continued challenge of lower sales quantities”.
Alongside this, the company’s UK sales rose 11.9% to £2.46bn, with the company stating that number was boosted by more customers shopping for the home amid the ongoing cost-of-living crisis.
Online sales made up 23% of Ikea’s sales in FY23 compared with 22% in FY22 and its online channels hosted 3.8 billion visitors, compared to 4.3 billion last year.
During the year Ikea opened over 70 new stores in places such as Madrid, Almeria, Rome, Surabaya, Bavaro, Cabo, San Francisco and Toronto.
The company also opened its first ever store in New Zealand in the period.
Furthermore, the company introduced bio-based glue which will reduce its fossil-based glue usage by 40% and the climate footprint from glue by 30%, by FY30.
Jon Abrahamsson Ring, Inter IKEA Group CEO, said: “Intensification of internal efforts to reduce material and manufacturing costs, led to a decrease in IKEA retail prices at the end of FY23. In challenging times when inflation is high and many people struggle with the cost of living, the need for home furnishing solutions at affordable prices is high.
“This is where we will continue to do what IKEA has always done – putting customers’ affordability first. Looking further ahead, the three main opportunities we see for IKEA are to become even more affordable, more accessible and more sustainable.”
He added: “Of course, none of the above would have been possible without our 219,000 IKEA co-workers, who, together with our thousands of partners and suppliers, have worked tirelessly to make IKEA successful in FY23.
“I would also like to thank all our customers for our first 80 years and the trust they placed in us and our products. We now look forward to the next exciting 80 years as the IKEA brand continues to evolve and respond to the wishes, needs and dreams of people everywhere for a better everyday life.”
