IKEA U.S. Annual Summary Fiscal Year 2024

Our Commitment to Affordability and Accessibility

The past year presented challenges, including higher interest rates and increased food prices, impacting disposable income. Retailers like IKEA U.S. also faced supply chain disruptions. Despite these hurdles, IKEA U.S. prioritized customers and focused on becoming more affordable, accessible, and sustainable.

In fiscal year 2024, IKEA U.S. continued its vision of creating a better everyday life for the many. With many consumers facing financial strain, prices were lowered on nearly 1,500 products, and a 'Buy now, pay later' option with Afterpay was introduced to ease the burden of major purchases.

To enhance accessibility, eight Plan and order points were opened, supplementing existing pick-up points and FedEx collection points. The distribution and fulfillment network was also improved to support an omnichannel growth strategy, ensuring customers can shop whenever, wherever, and however they choose.

IKEA U.S. remained committed to positive societal change by investing in clean energy solutions and expanding its Buy back & resell program to 49 of its 51 stores. These efforts contributed to the highest customer satisfaction score to date and a reduced co-worker turnover rate of 22%, significantly below the U.S. retail industry benchmark.

The company has seen significant gains in its long-term U.S. investment, with market share increasing by 13.6% over the last five years. In 2025, IKEA U.S. will celebrate its 40th anniversary, continuing its focus on reaching the many people and making dreams of a better life at home a reality.

Javier Quiñones
CEO & Chief Sustainability Officer, IKEA U.S.

Building Better into Everything We Do

IKEA's approach is guided by four core principles:

Better Homes

Low Price with Meaning is Our Priority

A better home is believed to enable a better life. For nearly 40 years, IKEA U.S. has provided access to inspiring and affordable home furnishings. In fiscal year 2024, the focus remained on meaningful affordability through cost-saving opportunities and operational efficiencies, leading to the reintroduction of 'New lower price' on hundreds of products. Continuous investment in quality, sustainable products ensures offerings provide a better life at home at the lowest possible price.

Delivering Home Furnishing Inspiration

Fiscal year 2024 saw the debut of IKEA Open House at Miami Art Week, showcasing storage solutions. The first-ever IKEA U.S. Style Guide was released, highlighting four interior design movements. The inaugural IKEA Ready for College Bus Tour visited over 30 campuses with back-to-college solutions. New tools and services included a Spanish-language website and 'Buy now, pay later' with Afterpay. New collections featured UTSUDD (pet accessories), TESAMMANS (home workout collaboration), and MITTZON (office furniture).

Bringing IKEA Closer to the Many

Recognizing the importance of accessibility, IKEA continues to innovate with customer meeting points like Plan and order points and newly announced small-format stores. These formats are key to growth, aiming to meet customers where they are while offering affordable, quality products.

In fiscal year 2024, eight Plan and order points opened in Southlake, TX; Fairfax, VA; Katy, TX; Gaithersburg, MD; Arlington, VA; Annapolis, MD; Austin, TX; and Alpharetta, GA. More are planned for California, New Jersey, Arizona, Oregon, and Maryland in 2025.

Rob Olson
Chief Operating Officer, IKEA U.S.

IKEA also announced IKEA Rockwall, the first small-format IKEA store in the U.S. built from the ground up, set to open in 2026 in the Dallas-Fort Worth area. This store will offer a unique shopping experience with a smaller footprint but a full range of IKEA products, including in-store purchases of home accessories and smaller furniture, with larger items available for delivery or in-store pick-up. It will feature fully furnished room settings, sustainable design elements (solar power, LEED-certified construction, EV chargers, onsite recycling, native plants), and new concepts like the Swedish Deli and Swedish Bistro.

Safer Homes

IKEA U.S. is proud to be among the first retailers to offer chests of drawers meeting the latest U.S. federal stability standards, reinforcing its commitment to safer homes and consumer trust.

Following the STURDY Act enactment in 2022, IKEA U.S. ensured its products meet new furniture stability requirements. By April 2024, all chests and dressers sold in the U.S., including the new GULLABERG and STORKLINTA ranges, were compliant.

Chests of drawers feature innovative stability solutions like the patented Anchor-and-Unlock solution, which requires wall anchoring to enable multiple drawers to open simultaneously. IKEA shared this patent with the furniture manufacturing industry to promote wider adoption of safety measures.

Tracey Kelly
Program Lead for Safer Life at Home Development, IKEA U.S.

Better Planet

Creating a Positive Impact

IKEA U.S. is committed to becoming fully circular and creating a positive environmental impact. In fiscal year 2024, the Buy back & resell program expanded, the number of EV chargers at U.S. locations increased, and zero-emission deliveries boosted by over 90% since fiscal year 2023.

Buy Back & Resell

Almost all IKEA U.S. stores implemented the Buy back & resell program. By the end of fiscal year 2024, over 2,700 products were eligible for buy-back and resale in the As-is section. A marketing campaign highlighted circular services, including Buy back & resell, As-is, and spare parts programs, emphasizing the link between sustainability and affordability.

Advocacy

IKEA U.S. is committed to limiting global temperature rise to 1.5°C. The company supports investments in climate action, working with industries to back clean energy incentives from the Inflation Reduction Act. This support helps produce more energy in the U.S., boost the economy, and build a sustainable future.

To facilitate zero-emission home deliveries, IKEA U.S. supports policies increasing the supply of zero-emission delivery trucks in states like Pennsylvania, New Jersey, and California. Collaboration with the federal government also supports the expansion of EV charging infrastructure for commercial delivery vehicles.

To achieve its ambition of becoming a circular business, IKEA U.S. supports policies promoting a circular and innovative economy. This includes state and federal legislation aimed at increasing recycled textile materials (SB 707, the Responsible Textile Recovery Act of 2024) and expanding recycling infrastructure (S. 1194, the Recycling and Composting Accountability Act of 2024, and S. 1189, the Recycling Infrastructure and Accessibility Act of 2024).

More Good Things

ONE HOME, ONE PLANET U.S. was held in March 2024, bringing together over 100 participants to brainstorm actions for a circular economy, affordable housing, and clean construction.

IKEA U.S. plans to install a total of 500 public fast chargers and over 300 fleet chargers in the coming years, using electric delivery vehicles in 48 locations. In March 2024, the plant-based IKEA plant dog was introduced, offering a lower-priced, plant-based alternative to the traditional meat-based hot dog.

Mardi Ditze
Country Sustainability Manager, IKEA U.S.

Taking Bold Steps to Reduce Climate Footprint

In fiscal year 2024, IKEA U.S. generated approximately 770,111,079 kWh of renewable energy, exceeding its locations' consumption.

• 198,381 solar panels producing 52,367,868 kWh of energy
• 7 fuel cell arrays producing 14,051,440 kWh of energy
• 374 EV charging stations across 56 properties
• 104 wind turbines producing 703,691,771 kWh of energy
• 183,577 acres of responsibly managed forests
• 2 geothermal systems
• 317,933 zero-emission deliveries
• 2,001,616 packs of LED bulbs sold
• 3,887,096 plant balls sold

Better Lives

Caring for People is at the Heart of Everything We Do

Efforts to improve the lives and well-being of customers, co-workers, and communities are a vital part of IKEA U.S.'s positive impact.

We're Focused on Our People

IKEA believes work is more than a job, and a better life at work leads to a better life. The company strives to be a great place to work, fostering individual growth, professional development, and a welcoming environment. Supporting co-workers' needs at work and home is a top priority, with active engagement through conversations and evaluation of benefits, development opportunities, and the workplace.

Through the 'Tack' program, eligible co-workers received an allocation to their retirement fund in appreciation for their contributions. The full-time allocation for the U.S. in fiscal year 2024 was $472.07, with part-time co-workers receiving a proportional amount.

Co-worker benefits were expanded by:

• Launching a more inclusive family and medical leave of absence (FMLA) equivalent policy for domestic partners and increasing personal leave to 12 weeks.
• Adding a financial support program providing low-cost loans repaid via payroll deductions.
• Adding a Roth feature to the 401(k) plan for retirement savings flexibility.
• Adding support services for co-workers with diabetes and hypertension, including virtual physical therapy for joint and muscle conditions.
• Introducing a new platform to help co-workers and their families navigate Medicare information.

We're Better Together

IKEA's growth ambitions and understanding of life at home start with its people. In fiscal year 2024, voluntary co-worker turnover in stores and warehouses fell by 18% to 22%, well below the industry average of 38%. This reduction is attributed to listening to co-workers through an annual survey to gather feedback and drive improvements.

Neena Potenza
Chief Human Resources Officer, IKEA U.S.

The long-term talent approach focuses on empowering co-workers through continuous learning and growth, offering clear career pathways. Key elements include:

1. Unleashing potential: Joint responsibility for talent development with clear career paths.
2. Equity in skills development: Accessible and relevant learning for all.
3. Values-based recruitment: Hiring individuals who share IKEA's values.
4. Readiness for roles: Preparing co-workers for future roles.
5. Stability and tenure: Valuing time in roles for career development.
6. Internal promotion and selection: Prioritizing internal talent for opportunities.

Spanish Language Website

In July 2024, IKEA launched its Spanish-language website, IKEA en Español, providing a complete in-language e-commerce experience and support via a Spanish-speaking phone line. This initiative enhances inclusivity and accessibility for Spanish-speaking customers.

Jessica Santiago Byrd
Multicultural Marketing Communications Manager, IKEA U.S.

ED&I by the Numbers

IKEA aims to foster an inclusive environment. Data is shared transparently to affirm commitment to continuous improvement.

IKEA U.S. co-workers (16,211 people)

IKEA U.S. country management team (22 people)

Trauma-Informed Design

In fiscal year 2024, IKEA unveiled a model home designed with trauma-informed principles at IKEA Live Oak, developed in collaboration with WestEast Design Group and Towne Twin Village. This initiative aims to create spaces that promote healing and well-being, embodying an empathy-based approach to design using sustainable materials. Co-workers were trained on these principles, and the model home will serve as a research hub.

Samantha Eisenman
Sustainability Business Partner, IKEA U.S.

Partnering for Social Change

IKEA U.S. aims to be a force for positive change, providing over $1.5 million in retail value of in-kind and financial donations to 220 nonprofits in fiscal year 2024.

• LGBTQ+ Community Support: $100,000 from rainbow cake sales to True Colors, and $50,000 from STORSTOMMA rainbow shopping bags to Rainbow Railroad. The Progress Flag was updated to the Intersex-Inclusive Progress Flag.
• Support for Homelessness: Collaboration with Family Promise in over 20 markets, contributing $25,000 and over $65,000 in product donations for homelessness prevention and shelter services.
• Disaster Relief: Partnership with the American Red Cross, contributing over $150,000 in product donations and $50,000 from an Earth Month campaign for climate-related disasters.
• Support for Kids After Crises: Raised $28,600 and contributed $50,000 to Save the Children for social-emotional support programming for children affected by crises.

Better Company

Creating a More Seamless Shopping Experience

IKEA U.S. is focused on meeting customers where and how they want to shop, while remaining affordable and providing quality products. In fiscal year 2024, new stores and locations were opened, the fulfillment network was strengthened, and technology was enhanced to improve operations and customer service. The company aims to modernize the shopping experience and offer inspiring home furnishings to more people.

At Your Service

In fiscal year 2024, IKEA U.S. continued to enhance business operations and customer service for a more affordable, convenient, and accessible shopping experience.

• Discounted Shipping & Delivery: Additional options were introduced for IKEA Family loyalty members.
• Standardized Pricing for Assembly: In March 2024, IKEA partnered with Taskrabbit to implement standardized pricing for product assembly on taskrabbit.com, ensuring consistent and transparent pricing. This led to a 50% increase in customers adding assembly services.
• Buy Now, Pay Later: The first-ever 'Buy now, pay later' program with Afterpay was introduced, offering a budget-friendly payment option for U.S. shoppers online and in-store.
• Buy Back & Resell Service: Nearly all stores offer this service as of May 2024, helping customers extend furniture life and promoting sustainable living.
• Improved Customer Satisfaction: IKEA U.S. received its highest customer satisfaction score to date.
• Improved Wait Time: Efficiency of the Click & Collect service was improved, reducing customer wait times by over 40%.

Embracing a Digital Transformation

In fiscal year 2024, IKEA U.S. advanced its digital transformation by creating digital touchpoints for customers, developing internal solutions for co-workers, and embedding digital practices for agility and collaboration. Improvements were made to e-commerce and fulfillment processes.

A new payment experience was integrated for IKEA for Business customers through Slope Tech Inc., offering 30-day net terms, streamlined checkout, enhanced budget management, and instant eligibility for up to $100,000. This simplifies financial transactions for small and medium-sized businesses.

Amanda Effron
Chief Digital Officer, IKEA U.S.

The IKEA shopping experience was improved with enhanced services for customers and advanced tools for co-workers:

• Enhanced the back-to-school college discount program.
• Fully integrated Taskrabbit assembly services into the online experience.
• Enabled mobile ordering, payment, and pickup at IKEA Restaurants and Bistros.
• Expanded Click & Collect locations.
• Improved visibility of pick-up locations across channels.
• Launched a co-worker-focused platform for more accessible and secure information.

Even Better in FY25!

Looking ahead to fiscal year 2025:

• IKEA Roseville became a permanent Plan and order point in December 2024.
• IKEA Arcadia transformed from a Plan and order point to a small store in December 2024.
• IKEA Memphis finalized its remodel in January 2025, including a central planning hub, updated Showroom, and expanded Swedish Restaurant.
• Warehouse additions are underway at IKEA Miami and IKEA West Sacramento, and Market Halls are being renovated at IKEA Stoughton and IKEA Charlotte.
• New Plan and order points are announced for California, New Jersey, Arizona, Oregon, and Maryland.

FY24 Business Highlights

In fiscal year 2024, IKEA U.S. focused on enhancing efficiencies and increasing accessibility, concluding the year with $5.5 billion in total sales.

• E-commerce experience enhancements resulted in a 5.6% increase in remote sales.
• The Spanish-language website, IKEA en Español, was launched.
• 'New lower price' was reintroduced, leading to a 2.7% increase in pieces purchased per basket.
• Despite economic challenges, IKEA U.S. remains committed to meeting customer needs as an affordable resource.
• In fiscal year 2025, a $2.2 billion investment is slated for omnichannel growth, including new locations and fulfillment network maximization.

IKEA in the U.S.

IKEA's vision is to create a better everyday life for the many people by offering well-designed, functional, affordable, high-quality home furnishings, produced with care for people and the environment. For almost 40 years in the U.S. and 80 years globally, IKEA has continually evolved to meet and inspire people whenever and however they choose to shop.

• 51 stores
• 10 Plan and order points
• 11 distribution units
• 39 pick-up locations
• 2 wind farms
• 2 solar parks
• 183,577 acres of forests
• 15,622 co-workers

Key: Store, Plan and order point, Merchandise pick-up, Distribution center, Call center, Office, Taskrabbit, Geomagical Labs, Wind farm, Solar park, Forest.