Despite supply problems, price increases, an exit from Russia and low consumer confidence, Ikea has delivered strong results. The home furniture chain is betting more than ever on low prices.
“Staying affordable”
Ikea saw its global sales increase by 5.6% to 39.5 billion euros in the last financial year 2021-2022. This is a strong performance in extremely difficult times, believes Jesper Brodin, the CEO of Ingka Group, the company that operates most Ikea stores: “The last year has tested us like never before, as a business, as leaders and as people. Uncertainties will continue be part of our lives in the coming years, but I am optimistic.”
The retailer paused operations in Russia and Belarus and faced rising inflation and rising costs of energy and raw materials. Nevertheless, the company is doing all it can to keep prices as low as possible. “Being affordable is in our DNA and the key focus of our business – it has never been as important as now when we see an increasing cost of living,” Brodin said.
Inter Ikea Systems, owner of the Ikea concept and global franchisor, today published total retail sales of 44.6 billion euros for all 12 franchisee groups, a 6.5% growth.
