Ingka Group has announced its share of IKEA retail sales of EUR 39.6 billion for the financial year 2024, a decrease of 5% compared to last year (EUR 41.7 billion in FY23).
The company has prioritised lowering the prices to customers by investing more than EUR 2.1 billion across thousands of products across all markets. This led to an increase in store visitation by more than 3% and online visitation by 28% while the number of online orders went up by 9%.
“We are in times when dreams and needs for a better life at home are greater than ever. At the same time, inflation and interest rates have impacted on people’s wallet and when times are challenging for people, we want to support in the best possible way. Investing into lowering our prices is our long-term promise and this has been a year where the strength of the IKEA vision, our togetherness, and our entrepreneurship lived up to the test of time,” said Jesper Brodin, CEO, Ingka Group.
At the same time, Ingka Group continued to deepen its market presence and reaching more people by investing over EUR 1.3 billion in revamping existing stores, expansion, and digital development. The retailer opened 43 new locations across the world, including new stores in Japan, Switzerland, and China, as well as plan and order points in the US and Italy, among other places, allowing customers to plan their dream home and order any IKEA product. To further improve customer experience, the company rolled out new fulfilment solutions and artificial intelligence driven technology, such as tools for faster pick-up and deliveries, self-service digital kiosks for locating products in the stores, and demand sensing solutions for better availability of articles. This has led to achieving the highest score in customer satisfaction since the retailer started measuring it five years ago.
“It has never been so important to be as affordable as possible – that’s why we’ve dedicated our energy and resources to lowering our prices. At the same time, we kept investing in developing and innovating our retail business, bringing our existing stores to the best shape ever, while securing good value for money and further improvements to our digital solutions and services,” said Tolga Öncü, Ingka Retail Manager (COO), Ingka Group.
The IKEA ambition is to deliver to the Paris Agreement and become net zero by reducing absolute greenhouse gas emissions from the entire value chain up- and downstream, by at least 50% by 2030 and 90% by 2050. The company has accelerated its investments into renewable energy and is committed to invest EUR 7.5 billion until 2030, where more than EUR 4.2 billion has already been invested to accelerate the transition to a net-zero society.
In other news, Ingka Investments has made its second investment in the 1,333MW Golden Plains Wind Farm in Victoria, Australia, taking a 15 percent stake in Stage 2 of the 2.5 billion EUR mega-project that will be the biggest wind farm in the southern hemisphere.
The first turbines have started spinning at the 756MW Stage 1 of the project – enough to power 765,000 Australian homes. The first power export followed 20 months of construction. The project consists of 215 turbines that stand 149 metres high with 79 metres blades.
As Golden Plains Wind Farm Stage 1 is energised, Ingka Investments announces its second investment in the project, taking a 15 percent stake in the project´s 577MW Stage 2 commencing in June 2024 and is expected to be completed in mid-2027.
The investment continues the partnership with TagEnergy after Ingka Investments secured a 15 per cent stake in Stage 1 in 2023 – its first major utility scale renewable energy investment in Australia.
Ingka Investments second investment in Golden Plains Wind Farm is another significant step in its strategic priority to secure long-term access to renewable energy in IKEA Retail countries in Asia Pacific. Similar to its pro-rata ownership stake in Stage 1, Ingka Investments will be able to claim up to 15 percent of Stage 2’s output of electricity and use it to reduce the local Ingka Group climate footprint.
Ingka Investments Head of Renewable Energy, Frederik de Jong said, “Our 15% stake in Golden Plains Wind Farm Stage 2 highlights our dedication to securing renewable energy for IKEA retail countries and advancing sustainability goals. This move comes as we are accelerating our investments in renewable energy and circularity to support Ingka Group’s net-zero science-based targets and commitment to reach net-zero by 2050. It also strengthens our ability to support value chain partners with renewable energy solutions, promoting a sustainable future for all. As a country, Australia has an ambitious renewable energy target, and we are proud this investment can also help to support this goal.”
Mirja Viinanen, CEO and Chief Sustainability Officer, IKEA Australia, said, “We believe the future of energy is renewable, and Australia has such rich potential to harness these sources, especially wind and solar. As we work to reduce our climate footprint in our retail operations, we’re investing in renewable energy through onsite generation at our stores and distribution centre and switching to renewable energy for heating and cooling in our buildings. This investment from Ingka Investments will not only help reduce our local footprint, but it also contributes to further growth in the Australian renewable energy sector.”
