IKEA Group sales bolstered by digital transformation
Ingka Group today announced strong IKEA retail sales of EUR 37.4 billion for the financial year 2021, an increase of 6.3% compared to last year (EUR 35.2 billion in FY20).
Inter IKEA Systems B.V., which is the owner of the IKEA concept and the worldwide IKEA franchisor, also announced today total IKEA retail sales of EUR 41.9 billion across all 12 groups of franchisees.
Despite the challenges posed by the pandemic, the company continues to invest in becoming more accessible digitally and physically, more affordable and truly sustainable – to better meet the needs and dreams of its customers.
The pandemic has impacted the already fast-changing retail environment with restrictions and closures, leading Ingka to accelerate its digital transformation. Transforming stores to serve also as fulfilment units, as well as a revamp of IKEA.com and further roll-out of the IKEA app, led to an increase in the share of online sales from 18 percent to 30 percent.
Jesper Brodin, CEO, Ingka Group said: “I’m really proud of the past year – we have grown as a business, as leaders and as people. Despite leading in the unknown, we continued to show incredible commitment and entrepreneurship with a clear ambition to create a better IKEA. All IKEA colleagues are a part of this success and as times continue to be challenging it’s important that we continue to keep the spirit of optimism and courage.”
Ingka Group continued to invest in expansion and innovation, offering more customers the ability to choose when, where, and how they want to engage with IKEA. Throughout the last year, the way people live, work and socialise has dramatically changed and the need for multifunctional and clutter-free living spaces has increased. The company sees a higher demand for workplace furniture, outdoor furniture and storage solutions.
“We are humble about supporting hundreds of millions of people to create a better life at home when they needed it the most, using our insights and knowledge. Our most recent research, for example, tells us that people who feel positive about their homes were much more likely to see positive mental health impacts. As a home furnishing retailer, we are humbled to contribute to making such a difference for so many people,” said Jesper.
Ingka Group continues to take action to become climate positive by 2030 and has committed to invest an extra an extra EUR 4 billion in renewable energy projects to further reduce its climate footprint and contribute towards limiting the global temperature rise to 1.5°C. In addition, the company is the founding member of the UNFCCC Race to Zero – Retail Campaign together with H&M, Kingfisher and Walmart, aiming to drive greater climate action in the retail industry.
