IKEA Canada prioritized lower prices and continued investment in omnichannel transformation as fiscal year 2024 rang in $2.87 billion in annual sales, reported the retailer on Thursday.
“To close the fiscal year ending August 31, 2024, the renowned home furnishing retailer maintained $2.87 billion in retail sales (-1.4 per cent compared to FY23) while remaining focused on lowering prices as Canadians continue to navigate economic challenges,” it said in a news release.
“Responding to insights revealed in its 10th annual IKEA Life at Home report, where 45 per cent of
Canadians say their household finances and disposable income are a top concern, IKEA Canada
lowered prices on more than 1,500 products throughout 2024 including much loved classics like the
STRANDMON Armchair, and icons of the brand’s Democratic Design like the BILLY Bookcase.
“IKEA further demonstrated its commitment to meeting customers with meaningful solutions in the face of ongoing affordability pressures with the introduction of 50 per cent off restaurant dishes every Thursday throughout the summer that led to $137 million in food sales (+11.3 per cent compared to FY23). IKEA stores throughout the Greater Toronto Area also saw investments into increased automation and infrastructure to improve operational efficiency through the fiscal year.”
“We are proud of the ongoing dedication of our co-workers from coast to coast who meet our
customers with care, support our communities in need, and help to create a better everyday life for
the many Canadians who seek affordable solutions that help them live more sustainable and
fulfilling lives at home,” said Selwyn Crittendon, CEO and Chief Sustainability Officer at IKEA
Canada.
“During challenging times, we remain focused on lowering prices and siding with
Canadians when they need us most. We are optimistic for the year ahead and know that our
continued investments will help to make an even better IKEA to meet the needs of our co-workers, customers, and communities for generations to come.”
He said affordability has been the number one challenge for many Canadians this year.
Crittendon said the company reinforced its commitment to affordability by investing $120 million to reduce prices and introduced new financial services to help more people bring their dream homes to life. The retailer welcomed 32.6 million customers into its stores and 162.6 million online.
Food sales have become an important part of the IKEA experience.
- $137 million total food sales (11.3 per cent increase)
- 22.9 million+ IKEA meatballs
- 2.9 million+ IKEA plant balls
- 3.3 million+ IKEA hot dogs
- 2 million+ frozen yogurts
“What we started to see this past year really making sure that we do our part with really advancing lowering our prices, we’ll continue this year. We’re going to go after more lower prices on many more articles and I’m happy to say that many of these articles are priced lower than they were in 2019,” he said.
“We’re going to also introduce even more sustainable food this year. So the plant dog is coming. We’re going to introduce a new cod nugget. We’ll have so many new options for plant-based eating and we will have more opportunities for many more people who desire a healthy, sustainable lifestyle.
“But I think more importantly this year is we’re going to double down in the areas that we’re already in. So you’re going to continue to hear about the wonderful products that we delivered last year.”
IKEA Canada said it introduced SHT (Second-Hand Tax) in 2024, drawing attention to the unfair double tax on second-hand goods. For a limited time, customers in Ontario saved the tax on second-hand purchases and an online petition garnered more than 35,000 signatures to spark conversation about the issue.
“IKEA Canada aims to continue the conversation with retailers and government officials to end the taxation on second-hand goods, while the brand remains committed to helping Canadians do more with less. IKEA continues to invest in its suite of services as more Canadians aim to make their homes
better to meet the needs of evolving living situations from multi-generational families to smaller
spaces,” it said.
“Through 2024, IKEA expanded its network of Plan and order points in Ontario and Quebec offering personalized services where customers can meet with knowledgeable IKEA specialists to
design complex home furnishing projects for the kitchen, bedroom, and bathroom. Once designs
are complete, the products can be ordered for home delivery or retrieved at a local pick-up point.
“Continuing growth in the Quebec market, IKEA is slated to open two new Plan and order points in
Sherbrooke and Vaudreuil in Spring 2025 where the brand will be able to meet more of the many
Quebecers and support them with custom design needs, closer to home. IKEA Canada also
introduced Financial Services so that customers can spread out payments for their larger purchases
over time.”
Last fiscal, IKEA Canada said it saw a significant decrease in co-worker turnover rate, starting the year at 35 per cent and ending at 24.5 per cent, the lowest turnover rate in a decade and more than 10 per cent less than the industry average of 37.4 per cent.
“The magic behind IKEA Canada is the wonderful co-workers,” added Crittendon. “I really appreciate all their efforts. It’s because of them
Founded in 1943 in Sweden, IKEA is a leading home furnishing retailer, offering a wide range of
well-designed, functional home furnishing products. IKEA Canada is part of Ingka Group which operates 389 IKEA stores in 31 countries, including 16 in Canada. Last year, IKEA Canada welcomed 32.6 million visitors to its stores and 162.6 million visitors to IKEA.ca.
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