Ikea Canada sales up 6.1%
BURLINGTON, Ontario – IKEA Canada has reported sales for its latest fiscal year climbed 6.1% on a year-over-year basis to $2.53 billion. It also noted e-commerce sales of $261.2 million, 8.2% uptick over the prior year as visits to its web site, IKEA.ca, jumped 12% to 117.2 million. It is also planning to open a small ‘city centre’ store in downtown Toronto.
The home furnishings retailer’s fiscal year ended on 31 August 2019. It is part of the IKEA Group, which is headquartered in The Netherlands and is believed to be the world’s largest furniture and home furnishings retailer.
At $2.53 billion, IKEA Canada remains this country’s second largest furniture retailer, behinds Leon’s Furniture Limited (LFL), the publicly-held operators of Leon’s and The Brick. While the company didn’t provide any colour as to its sales mix, IKEA is classified as a furniture store by Statistics Canada and is a member of their Group of Large Retailers. The agency defines a furniture store as any retail establishment that generates 51% or more of its annual revenue from the sale of furniture, including mattresses.
This gives IKEA Canada an estimated 22% share of the country’s furniture retail market.
In its 2019 Summary Report, the retailer also reported some 31 million customers visited its 14 stores across the country, up uptick of 2.7%.
“We continue to see positive growth in the Canadian market, all while innovating and developing our business for the future. We want IKEA to be there for our customers, whenever and however they choose to meet us, IKEA Canada chief executive officer and chief sustainability officer Michael Ward said in a statement. “Our success in 2019 is a result of the hard work of our many co-workers across the country. As we transform, we continue to lead the business from our purpose, to create a better everyday life for the many people.”
Globally, over the past year IKEA has opened city centre locations in major cities like New York, Paris, Moscow and London. Unlike its full-sized stores – which average 340,000 square feet – the smaller city centre units are usually cover between 5,000 and 27,000 square feet, depending on the product assortment being feature. The first Canadian location will open somewhere in downtown Toronto sometime over the next 24 months, although no location has been confirmed.
In his statement, Ward said the new city centre approach, in addition to making IKEA more accessible to more Canadian consumers, will be inspired by how Torontonians live at home and will be based on their decades of experience in the market.
“As one of the fastest growing and most diverse cities in North America, Toronto is a natural first choice for us to target growth in the city,” he added. “With a growing demand for convenience, there is a strong market potential for solutions that are more accessible and personalized. This new city approach will complement our existing stores in the market, enabling customers to shop seamlessly across all touchpoints, based on their individual needs and preferences.”
During its 2019 fiscal year, IKEA Canada said it took significant steps on its journey to be more affordable, accessible and people and planet positive. The retailer grew its fulfilment network with new distribution centres in Richmond, British Columbia and the Toronto suburb of Kleinburg. It introduced services such as $5 Click & Collect, TaskRabbit in-home assembly and lower price delivery. IKEA also created new in-store experiences including large-scale events like the IKEA PJ Party, inspirational workshops and new planning services.
In moves to into integrate sustainability throughout its retail operations, the company took more steps toward its commitments to be a circular and climate positive business by 2030, such as its new Sell-Back program, where gently used products see a second life in exchange for store credit. This past May, they phased out plastic straws in Canada, months ahead of its global commitment to eliminate all single-use plastics by 2020. With the introduction of more sustainable food items like the plant-based veggie hot dog, IKEA Food saw a sales lift of 10% to $113 million.
In 2019, IKEA workforce grew to 7,300 nationwide. Aiming to be one of Canada’s top employers, IKEA introduced a new benefits program with a focus on wellness and an enhanced retirement program to better take care of its co-workers. IKEA believes embracing diversity, equality and inclusion is more than just the right thing to do, it is essential for long-term, sustainable growth. In 2019, the retailer reaffirmed its commitment to hire 250 refugees and rolled out its Refugee Employment Program to all units from coast to coast. IKEA co-workers proudly marched in Pride celebrations nationwide and the company contributed nearly $50,000 to LGBT+ organizations. Additionally, to support a child’s right to play, IKEA partnered with Women’s Shelters Canada to create needed play areas in shelters across the country.
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