Ikea has reported a second consecutive year of declining sales, with global revenues in the 12 months to August 31st falling 1%, or 0.3% adjusted for currency effects, to €44.6bn ($51.9bn). The company attributed the fall to the price cuts it made in 2024 after a period of high inflation, and said that both sales volumes and customer visits had increased by 3% last year. The company is increasing the amount of products it makes in the U.S., where it currently makes around 15% of what it sells in the country, compared with 75% local production in Europe and 80% in Asia. It will also be raising prices. “Our ambition is to continue lowering prices. But of course in the world we live in sometimes . . . that becomes very difficult or even impossible at some point,” said Tolga Öncü, retail manager at Ingka, the company that operates most Ikea stores around the world. “We have to adapt and pass on parts of the cost increase to the customers.” Additionally, Ikea said it is testing a new type of shop, named Lada, after the Swedish word for a barn, in smaller cities and towns, including three in the U.K. – in Norwich, Chester, and Harlow – and one apiece in Poland and the U.S.
Ikea sales fall for second consecutive year
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