What’s Ikea’s plan for prices after record sales in 2023?

CONSHOHOCKEN, Pa. — To celebrate outstanding sales performance for fiscal 2023, Top 100 retailer Ikea U.S. announced price cuts at retail and a bonus payout for co-workers.

In FY23, Ikea U.S. had a record year achieving more than $6.3 billion in total sales of goods and services, marking a 6.6% growth in revenue from the previous year. E-commerce was also up by 3.3%, and online visitation increased by 6.3% year-over-year.

“We are proud to share the success of another strong sales year with our co-workers and customers. When times are tough, we view it as our responsibility to provide quality and affordable home furnishing solutions and services that make everyday life at home a little easier,” said Javier Quiñones, CEO and chief sustainability officer, Ikea U.S. “Lowering prices is not just a promotion; it is our promise to our customers. Our priority is to remain as affordable as possible and continue reducing prices whenever we can to ensure that our products are accessible to all and that dream homes are within reach for the many.”

In November, Ikea U.S. re-introduced New Lower Price, a dedication to meaningful affordability through reduced prices on hundreds of products across the entire range in all U.S. stores and on Ikea.com. Some iconic products, such as the Billy bookcase, are marked down by 20% or more. Additionally, throughout December, Ikea U.S. will offer even more discounted items as part of a “24 Days of Deals” promotion and its annual Winter Sale.

Alongside the reveal of sales figures, Ikea U.S. will disperse a total of $54.5 million to co-workers across two-thirds of Ikea U.S. units as part of “One Ikea Bonus,” a performance-based payout. The program is an incentive system for all Ikea co-workers, based on the Ikea values of simplicity and togetherness, with everyone in each location working toward the same objectives.

“Our co-workers are the heart of Ikea, and our success in the U.S. is a reflection of their commitment to our values and vision,” said Neena Potenza, chief human resources officer, Ikea U.S. “By investing in our people, we are building an Ikea for the future. It is important that co-workers at all levels can be recognized and rewarded. Not only is it the right thing to do, but it is good for our business.”

In addition to the bonus payout, Ikea U.S. will announce its contribution to Tack! for co-workers this year. Tack! — meaning thank you in Swedish — is a loyalty program that all co-workers within the Ingka Group are invited to participate in to strengthen retirement benefits. Through Tack!, all eligible co-workers get an extra contribution to their pension funds in appreciation of their loyalty and contribution, regardless of their position or salary level.

In early 2024, Ikea U.S. will release a comprehensive FY23 Annual Summary that will include sustainability and equity updates for the company.

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