IKEA has announced an increase in annual sales, thanks to improved product availability following global supply-chain shortages. The Swedish furniture giant reported a 6.6% rise in sales, reaching 47.6 billion euros ($50.54 billion) for the 12 months ending on August 31. This growth was accompanied by an additional 38 million customers visiting its stores compared to the previous year.
Inter IKEA Holding, which owns the IKEA brand and manages its supply chain, attributed the rise in sales to a combination of cost-cutting measures and advancements in material development and production optimization. By reducing manufacturing costs, IKEA was able to lower retail prices, making its products more affordable for customers.
"In challenging times when inflation is high and many people struggle with the cost of living, the need for home furnishing solutions at affordable prices is high," said Jon Abrahamsson Ring, CEO of Inter IKEA.
Furthermore, IKEA worked closely with its partners to address logistical and inventory challenges, resulting in improved product availability in stores. To provide greater accessibility, the company opened over 70 new sales locations, including smaller stores and plan & order points in city centers.
In total, IKEA welcomed 860 million visitors across its stores during the fiscal year, compared to 822 million visitors the previous year. These positive sales figures are expected to be supplemented by full-year earnings, which the company will announce at the end of November.