Business Review HOME FURNISHINGS
IKEA reported sales of US$701 million, representing a 12% drop compared to the prior year. Overall LFL sales reduced by 11% in 2024. Operating profit was US$16 million, down 13% year-on-year.
Sales of Goods
US$ 701m
Operating Profit
US$ 16m
Store Network
26 stores
Chee-Leung Wong from the IKEA Nei Hu, Taiwan store is dedicated to serving customers, embodying IKEA’s mission to ‘create a better everyday life for the many people’
IKEA’s sales fell 12% to US$701 million due to reduced customer traffic from weak property markets
IKEA reported sales of US$701 million, representing a 12% drop compared to the prior year. Overall, LFL sales reduced by 11% in 2024. Operating profit was US$16 million, down 13% year-on-year.
IKEA’s business performance has been hampered by reduced customer traffic due to weak property market activity across regions. While IKEA Taiwan demonstrated relative resilience, sales in Hong Kong and Indonesia were affected by intensified competition and basket mix change as customers reduced purchases of big-ticket items.
In response to the challenging sales environment, the IKEA team continues to implement strong cost control measures across our markets. The IKEA Hong Kong business is pivoting towards a more value-driven omnichannel proposition to compete with Chinese mainland digital platforms. E-commerce penetration has now surpassed 10% across all markets. The IKEA Indonesia team remains focused on driving sales through enhancing store commerciality, increasing local sourcing, and adopting a more effective marketing strategy to improve local relevancy. Implementation of cost-saving measures contributed to narrowing losses compared to the prior year.
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- Sales of goods.
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- Based on operating profit before effect of adopting IFRS 16, excluding selling, general and administrative expenses and non-trading items.
The IKEA team continues to implement strong cost control measures across our markets, with IKEA Hong Kong pivoting towards omnichannel proposition and IKEA Indonesia implementing local strategies to improve performance
IKEA Indonesia team member Sasiana Yultresnaesati assisting a customer
IKEA Jakarta Garden City, Indonesia
IKEA Taiwan team members participated in a team-building activity at the IKEA Tao Yuan Store. From left to right are Allen Tzeng, Chee-Leung Wong, Cherry Chou, Leander van der Wolf, and Mei-Chen Shao
Team members at the IKEA Jakarta Garden City store
