Despite a slight drop in turnover, Ikea managed to break a footfall record in 2024 with nearly 58 million customers in France.
Ikea has limited breakage in France. In a suffering furniture market (-5% in the first half), weighed down by sluggish consumption and a stalled real estate market, the distributor “only” lost 100 million euros in turnover. business in one year.
In its 2023/2024 financial year, the Swedish group recorded sales of 3.7 billion euros compared to 3.8 billion the previous year, a drop of 3.6%.
The French subsidiary even acts as a good student around the world. Overall, the Ikea group reported a 5% drop in turnover over the year (to 39.6 billion euros). France remains, with its 36 stores, the group’s third market.
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If the number of visitors continued to grow this financial year (57.8 million +2.1%), it was mainly online sales that allowed Ikea to compensate for the drop in the average basket in store. Internet turnover jumped 10% and now represents 27% of Ikea France sales compared to less than 25% in 2023.
Another reason for satisfaction for the group: the growing success of the food business. Cafeteria, bistro and grocery store recorded a 5% increase in sales. French consumers favor hot dogs at 1 euro (50 cents for a vegetarian), plates of meatballs at 7.50 euros and fish and chips at 9.95 euros. Ikea also estimates that in recent years it has become the sixth largest restaurant chain in the world with 700 million customers each year.
200 million euros in price cuts
But if Ikea has been able to resist in a declining market it is not only thanks to its hot dogs. The brand has invested heavily to lower prices which had soared in 2022. A budget of 200 million euros was dedicated to reducing the prices of nearly 2,000 products over the financial year.
An example with the Billy shelf, the brand’s flagship product. Its price increased by 50% between 2020 and 2022, going from 39.99 to 59.99 euros. If the price has not returned to its pre-inflation level, the featured shelf is now offered at 49.99 euros. Other products were entitled to larger reductions such as the Minnen children’s bed (-40 euros, to 149 euros) or the Friheten convertible sofas sold 50 euros cheaper than a year ago.
To increase the average basket by encouraging impulse purchasing, Ikea has also increased its offering of inexpensive products at less than 5 euros. It now offers more than 1,900 in its stores. Knife kit, candle lantern, decorative dish, doormat, LED night light, bamboo holder for smartphone, stuffed football… There are plenty of bins of these products in stores.
Now that inflation has passed, Ikea wants to focus on a new phase of expansion in France. The brand has planned the opening of around twenty points of sale by 2030 in the country, whether in the outskirts where it remains absent or by attacking the centers of large cities as it will do in Paris with an upcoming opening in the 17th arrondissement in early 2025.
