Last year, Ikea managed to increased its sales volume and visitor numbers. However, its turnover fell as the furniture chain slashed its prices. The chain maintains this was not a miscalculation, but a deliberate strategy.
All about volume and market share
Ikea cut the prices of more than 3,000 products in its fiscal year 2024, decreasing prices by an average of 10 %. As a consequence, overall revenue at its retail division Ingka Group fell by 5 % to 39.6 billion euros. In the Netherlands, sales fell by 1.3 % to 1.62 billion euros, while Belgian sales remained relatively stable, falling just 0.83 % to 1.2 billion euros.
Nevertheless, Ikea is satisfied with the results, saying things have gone exactly as it had hoped: in a shrinking market, Ikea is gaining market share. In the Netherlands for example, the number of visits to physical shops increased by 8.3 %, while online visits went up by 6 %. Sales volume in Belgium even rose by 3.5 %. Online visits in Belgium increased by 18.5 %: one fifth of revenue in Belgium comes from e-commerce, a figure that is even 30 % in the Netherlands.
CEO André Schmidtgall explains that volume growth was his priority: by increasing its volumes, Ikea can negotiate lower purchase prices and reduce prices further. In September, 365 additional products were reduced in price, particularly in the bedroom category. In 2025, revenue will increase again (slightly), according to the CEO.
Lockers and Swedish meatballs
At the same time, Ikea continues to invest in new omnichannel concepts, such as lockers for online orders. They have already been used by 13,000 customers in four Belgian stores, and other outlets will soon be equipped with lockers as well. In the Netherlands, Ikea has opened its first Point Plan & Order in Leeuwarden: this is a showroom concept for regions that do not have a superstore nearby.
Remarkably, the food section is also gaining in importance. Thanks in part to price reductions, food turnover has risen by 6.2 % in Belgium. With eating out now considerably more expensive, Ikea aims to provide an affordable alternative.
