Burlington, Ontario, October 10, 2024. – Today, IKEA Canada announced its financial results after a year focused on accessibility and continued investment in its future operations. To close the fiscal year ending August 31, 2024, the popular home furnishings retailer maintained retail sales of $2.87 billion (-1.4% from FY23) while not losing sight of the need to lower prices as Canadians continue to face economic challenges.
In response to the findings of its 10th annual Living at Home report, in which 45% of Canadians say their household finances and income are a top concern, IKEA Canada has reduced prices on more than 1,500 items throughout throughout the year 2024. Among these items are very popular classics, such as the STRANDMON armchair, and symbols of the brand’s democratic design, such as the BILLY bookcase. IKEA has once again demonstrated its commitment to providing customers with meaningful solutions to ongoing affordability pressures by introducing 50% off dining in restaurants every Thursday throughout the summer, helping to achieve $137 million in food sales (+11.3% compared to FY23). IKEA stores in the Greater Toronto Area also benefited from investments in automation and infrastructure to improve operational efficiencies this fiscal year.
“We are proud of the continued dedication of our employees from coast to coast. They welcome our customers with care, support our communities in need and help improve the daily lives of the many Canadians looking for affordable arrangements to lead a more sustainable and satisfying life at home, emphasizes Selwyn Crittendon, CEO and Director of Sustainability at IKEA Canada. During these challenging times, we remain committed to lowering prices and supporting Canadians when they need us most. We are optimistic about the year ahead and know that our continued investments will help make IKEA an even better company, one that will meet the needs of our people, customers and communities for generations to come. »
IKEA Canada Fiscal Year 2024 Highlights:
More and more Canadians are interested in purchasing second-hand and vintage items to save money and reduce waste. This is why IKEA Canada introduced the TASM (second-hand goods tax) in 2024, in order to draw attention to the unfair double tax applied to second-hand items. For a limited time, Ontario customers saved tax on second-hand purchases and an online petition collected over 35,000 signatures to spark debate on the issue. IKEA Canada plans to continue discussions with retailers and government officials to end the taxation of second-hand items, while the brand remains committed to helping Canadians do more with less.
IKEA continues to invest in its servicesas more and more Canadians look to upgrade their homes to meet their changing living conditions, whether it’s multi-generational families or smaller spaces. Throughout 2024, IKEA has expanded its network of planning and ordering centers in Ontario and Quebec, offering personalized services where customers can meet with knowledgeable IKEA specialists to design complex home furnishing projects. kitchen, bedroom and bathroom. Once plans are complete, items can be ordered for home delivery or pickup at a local pickup center. Continuing its growth in the Quebec market, IKEA is expected to open two new planning and ordering centers in Sherbrooke and Vaudreuil in the spring of 2025. The brand will thus be able to meet a greater number of Quebecers and meet their personalized furnishing needs. , closer to home. IKEA Canada has also implemented financial services allowing customers to spread out payment for large purchases.
Despite persistent economic and environmental challenges, IKEA remained committed to helping more people enjoy a better life at home. This year, the brand continued to champion the rights of 2ELGBTQ+ people by engaging with communities, donating to local charities through the sale of STORSTOMMA bags and donating $200,000 to the 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 combat furniture poverty and promote sustainable practices within the community. Additionally, IKEA stores across the country continued to strengthen the brand’s commitment to reconciliation with indigenous peoples. The teams were able to build meaningful and lasting relationships with local indigenous communities, by hosting artistic installations created by indigenous artists and by offering set montages depicting the contemporary life of indigenous families.
To fuel IKEA’s future growth, the brand continued to focus on recruiting skilled talent while creating lasting relationships with existing employees. Over the past fiscal year, IKEA Canada saw a significant drop in employee turnover, from 35% at the start of the year to 24.5% at the end, the lowest turnover rate ever in ten years and more than 10% less than the industry average of 37.4%. This year, IKEA Canada aims to continue this downward trend by highlighting the things that matter most to employees, such as flexibility, financial options and tools, upskilling opportunities and mental health benefits .
