IKEA U.S. Announces New Lower Prices & People Investments Following Record Growth
Furniture World News Desk on
As a result of an outstanding sales performance for the 2023 fiscal year (September 1, 2022 – August 31, 2023), IKEA U.S. will share a reinvestment in the people who matter most. Many co-workers across the country will receive a bonus payout, and all customers will enjoy new lower prices as the brand continues its journey toward more affordability, accessibility and convenience for the many.
In FY23, IKEA U.S. had a record year achieving over $6.3 billion in total sales of goods and services, marking a 6.6% growth in revenue from the previous year. E-commerce was also up by 3.3% and online visitation increased by 6.3% compared to last year, indicating that IKEA U.S. customers continue to search and shop digital platforms. Despite the prevailing economic challenges, increased sales show that IKEA remains the affordable option, effectively meeting customers' needs and serving as a reliable resource during financially challenging times.
"We are proud to share the success of another strong sales year with our co-workers and customers. When times are tough, we view it as our responsibility to provide quality and affordable home furnishing solutions and services that make everyday life at home a little easier," said Javier Quiñones, CEO & Chief Sustainability Officer, IKEA U.S. "Lowering prices is not just a promotion, it is our promise to our customers. Our priority is to remain as affordable as possible and continue reducing prices whenever we can to ensure that our products are accessible to all and that dream homes are within reach for the many."
Becoming more affordable and convenient for the many
Considering thin wallets is one way IKEA U.S. prioritizes customer needs, and proximity is another. This November, IKEA U.S. re-introduced New Lower Price, a dedication to meaningful affordability through reduced prices on hundreds of beloved IKEA products across the entire range in all U.S. stores and on IKEA.com. Some iconic products, like the BILLY bookcase, are marked down by 20% or more. Additionally, throughout the month of December, IKEA U.S. will offer even more discounted items as part of a "24 Days of Deals" promotion and its annual Winter Sale.
In April 2023, IKEA U.S. announced that it was investing $2.2 billion to grow its presence in the U.S. Since then, IKEA has opened new locations in San Francisco, CA, Arlington, VA, and Southlake, TX, and 20+ Pick-up points across various locations, in addition to announcing new store formats coming to Fairfax, VA, Gaithersburg, MD, and Katy, TX. These thoughtfully placed, new-format stores and Pick-up points are part of the IKEA U.S. growth strategy to meet customers where they are and get closer to the many, and the expansion continues with new locations on the horizon.
Caring for co-workers
Customer satisfaction and the wellbeing of IKEA co-workers guide IKEA forward. Alongside the reveal of sales figures announced today, IKEA U.S. is excited to disperse a total of $54.5 million to co-workers across two-thirds of IKEA U.S. units as part of "One IKEA Bonus," a performance-based payout.
The "One IKEA Bonus" program is an incentive system for all IKEA co-workers, based on the IKEA values of simplicity and togetherness, with everyone in each location working toward the same objectives.
"Our co-workers are the heart of IKEA and our success in the U.S. is a reflection of their commitment to our values and vision," said Neena Potenza, Chief Human Resources Officer, IKEA U.S. "By investing in our people, we are building an IKEA for the future. It is important that co-workers at all levels can be recognized and rewarded. Not only is it the right thing to do, but it is good for our business."
In addition to the bonus payout, IKEA U.S. will announce its contribution to Tack! for co-workers this year. Tack!—meaning thank you in Swedish—is a loyalty program that all co-workers within the Ingka Group are invited to participate in to strengthen retirement benefits. Through Tack!, all eligible co-workers get an extra contribution to their pension funds in appreciation of their loyalty and contribution, regardless of their position or salary level.
In early 2024, IKEA U.S. will release a comprehensive FY23 Annual Summary that will include sustainability and equity updates for the company.
At IKEA, the vision is to create a better everyday life for the many people by offering well-designed, functional and affordable, high-quality home furnishing, produced with care for people and the environment. Ingka Group (Ingka Holding B.V. and its controlled entities) is one of 12 different groups of companies that own and operate IKEA retail under franchise agreements with Inter IKEA Systems B.V. Ingka Group has three business areas: IKEA Retail, Ingka Investments and Ingka Centres. Ingka Group is a strategic partner in the IKEA franchise system, operating 389 IKEA stores in 32 countries – including 55 retail locations in the U.S.