Swedish furniture company Ikea reported sales of $49.3 billion (EU$45.1 billion) for the fiscal year 2024, 5.3 per cent lower than last year. The company says the decline was mainly due to price reductions across 63 markets to make the brand more affordable for its consumers.

Despite challenges posed by a struggling global economy and a shrinking home furnishings sector, Ikea said its decision to lower prices helped increase its market share.

Although there was a drop in sales, Ikea saw growth in customer engagement, with a 4.5 per cent increase in in-store visits and a 21 per cent rise in online traffic. This growth is attributed to ongoing investments in enhancing the omnichannel experience.

The furniture chain also opened 56 new stores, including three full-sized, eight small-format, and 44 pick-up and order points. 

Jon Abrahamsson Ring, CEO of Inter Ikea Group, expressed gratitude to the company’s workforce.

“I want to express my heartfelt thanks to our 216,000 dedicated co-workers around the world who made all of this possible. Together, we make Ikea more affordable, accessible, and sustainable.”