Burlington, ON, October 10, 2024 – Today, IKEA Canada announced financial results for a year focused on affordability and continued investment in future operations. To close the fiscal year ending August 31, 2024, the renowned home furnishing retailer maintained 2.87 billion dollars in retail sales (-1.4% compared to FY23) while remaining focused on lowering prices as Canadians continue to navigate economic challenges.
Responding to insights revealed in its 10th annual IKEA Life at Home report, where 45% 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% off restaurant dishes every Thursday throughout the summer that led to $137 million in food sales (+11.3% 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,” notes 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.”
Fiscal year 2024 IKEA Canada Highlights:
Recognizing that more and more Canadians are paying attention to second-hand and vintage shopping to save money and reduce waste, IKEA Canada 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. 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.
Despite the continued economic and environmental challenges, IKEA remained resolute in its commitment to helping more of the many enjoy a better everyday life at home. This year, the brand continued to champion 2SLGBTQ+ rights through community engagement, donations to local charitable partners through the sale of STORSTOMMA bags, and a $200,000 donation to Rainbow Railroad through the sale of its limited time rainbow cake. IKEA Canada also strengthened its partnership with Furniture Bank in the Greater Toronto Area to address furniture poverty and promote sustainable practices within the community. In addition, IKEA locations across the country continued reinforcing the brand’s commitment to Indigenous reconciliation by establishing meaningful and long-lasting relationships with local Indigenous communities, hosting art installations by Indigenous artists and through room sets showcasing the contemporary lives of Indigenous families.
To fuel the future growth of IKEA, the brand maintained its focus on recruiting quality talent while creating life-long relationships with its existing co-workers. Last fiscal, IKEA Canada saw a significant decrease in co-worker turnover rate, starting the year at 35% and ending at 24.5% – the lowest turnover rate in a decade and more than 10% less than the industry average of 37.4%. This year, IKEA Canada plans to continue this downward trend by focusing on the things that matter most to co-workers such as flexibility, financial tools and options, development opportunities, and mental health benefits.
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