In a challenging retail landscape, IKEA Australia experienced significant growth in both store and online visitation in FY24. Store visits increased by 2%, with nearly 350,000 more people visiting our stores and Plan and Order Points. Online visits rose 16%, reaching 105.6 million.
One of the standout performers, Remote Customer Selling, often referred to as the “11th IKEA store,” saw a 23% increase in sales, generating over $43 million more than the previous year. This service allows customers to place orders with an IKEA specialist via phone or online chat, offering greater convenience for shoppers.
At IKEA, our profits are reinvested back into the business to enhance our stores, products, and services, or to support meaningful change through the IKEA Foundation. While many retailers have raised prices to protect their profit margins, we’ve taken a different approach. Over the past two years, we’ve committed $125 million in price reductions on over 3,000 items, aiming to bring prices back to pre-pandemic levels by 2025. This effort has been met with positive customer response, with a 23% increase in volume on these discounted items in FY24.
Our commitment to affordability goes beyond temporary discounts; it reflects our ongoing effort to help Australians create a better everyday life at home. We also continue to expand our services to reach more customers, especially those in regional areas. In FY24, we opened a Pickup point in Newcastle and have plans to introduce additional locations in FY25, providing a more convenient and cost-effective way for customers to collect their IKEA orders.
Sustainability remains a core focus for us. In FY24 and 2025, we will continue investing in renewable energy with three new solar PV projects, adding 2.5MW of solar power generation across IKEA Canberra, IKEA Marsden Park, and the Marsden Park Distribution Centre.
As we approach the 50th anniversary of IKEA in Australia next year, we remain committed to our mission of providing high-quality, affordable home furnishings to as many Australians as possible. We look forward to continuing to support our customers and communities, creating a better everyday life for everyone.
Key Figures:
- Total Sales: FY24: $1.725 billion (down 3.17% from FY23)
- Profit (after tax): FY24: $51.3 million
- Income Tax Paid: FY24: $40 million (effective tax rate of 30.1%)
- Online Share: FY24: 28.2%
- Remote Shopping Growth: FY24: +23%
- Store Visits: FY24: 17.16 million (+2% from FY23)
- Pieces Sold: FY24: 72.5 million (+2% increase)
About IKEA:
IKEA provides high-quality, reasonably priced, and well-designed home furnishings that are made with consideration for both people and the environment. Under the IKEA brand, a number of businesses with various owners operate with the common goal of improving daily living for the vast majority of people. In 1943, IKEA was established in Sweden.
