IKEA U.S. Annual Summary

Our commitment to affordability and accessibility

This past year was challenging for many, with higher interest rates, increased food prices, and other economic factors impacting disposable income. IKEA U.S. prioritized customers by focusing on becoming more affordable, accessible, and sustainable, despite supply chain disruptions.

In fiscal year 2024, IKEA continued its vision of creating a better everyday life. To address thinner wallets, prices were lowered on nearly 1,500 products, and a 'Buy now, pay later' option with Afterpay was introduced to ease financial strain on major purchases.

Accessibility was enhanced through the opening of eight new Plan and order points, adding to the existing 39 pick-up points and 21,000 FedEx collection points. The distribution and fulfillment network was also improved to support an omnichannel growth strategy.

IKEA remained committed to positive societal change by investing in clean energy solutions and expanding its Buy back & resell program to 49 of 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.

Long-term investment in the U.S. has shown gains, with market share increasing by 13.6% over five years. In 2025, IKEA U.S. will celebrate its 40th anniversary, continuing its focus on reaching people and making their homes better.

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

Building better into everything we do

IKEA's approach is structured around four core pillars:

• Better homes ?: Bringing inspiring and affordable home furnishings to everyone, focusing on omnichannel innovation to integrate physical and digital channels and offer solutions for healthier, sustainable living.
• Better lives ❤️: Prioritizing people by creating a fairer society, extending efforts to co-workers, supply chains, customers, communities, and society at large, aiming to be a force for good.
• Better planet ?: Taking bold steps to reduce greenhouse gas emissions, minimize resource use and waste, and promote biodiversity and water conservation, making sustainable choices easier for customers.
• Better company ⬢: Operating with a humanistic outlook, guided by vision and values, fostering fairness, inclusivity, and good governance, and reinvesting net income to achieve charitable purposes.

Better homes

Low price with a meaning is our priority

For nearly 40 years, IKEA U.S. has provided inspiring and affordable home furnishings. In fiscal year 2024, IKEA focused on meaningful affordability by identifying cost savings and improving efficiencies, leading to 'New lower price' on hundreds of products. The company continues to invest in quality, sustainable products to offer a better life at home at the lowest possible price, aiming to be a trusted and affordable retailer for beautiful and functional home furnishings.

Delivering home furnishing inspiration

IKEA Open House

Fiscal year 2024 saw the debut of IKEA Open House at Miami Art Week, an immersive event showcasing storage solutions for beautiful and organized homes.

IKEA U.S. Style Guide

The first-ever IKEA U.S. Style Guide was released, featuring four interior design movements for 2024, offering inspiration and expert tips.

IKEA Ready for College Bus Tour

An IKEA-themed school bus tour visited over 30 college campuses nationwide, featuring new back-to-college solutions.

New tools & services

New offerings included a Spanish-language website and 'Buy now, pay later' with Afterpay.

New collections

New collections included UTSÅDD (pet accessories), TESAMMANS (home workout, collaboration with Raw Color), and MITTZON (office furniture).

Bringing IKEA closer to the many

IKEA is innovating with customer meeting points like Plan and order points and small-format stores to increase accessibility and meet customers where they are, offering affordable, quality products.

Plan and order points

In fiscal year 2024, eight Plan and order points opened in various Texas and Virginia locations. More are planned for California, New Jersey, Arizona, Oregon, and Maryland in 2025.

Rob Olson, Chief Operating Officer, IKEA U.S.

Our first small-format IKEA store in the U.S.

IKEA Rockwall, a new small-format store in the Dallas-Fort Worth area, is set to open in 2026. It will offer a unique shopping experience with a smaller footprint, a full range of products, and sustainable features like solar power and EV chargers. It will also include a Swedish Deli concept.

Safer homes

Committed to creating safer homes

IKEA is a leader in home safety, being one of the first retailers to offer chests of drawers meeting the latest U.S. federal stability standards.

Leading by example

Following the STURDY Act, IKEA ensured all chests and dressers sold in the U.S., including new GULLABERG and STORKLINTA ranges, comply with new stability regulations.

Innovation & collaboration

Chests of drawers feature patented Anchor-and-Unlock solutions to prevent tip-overs. IKEA has shared this patent with the industry to promote wider adoption of safety features.

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, EV charger numbers increased, and zero-emission deliveries grew by over 90% since fiscal year 2023.

Buy back & resell

Nearly all IKEA U.S. stores offer the Buy back & resell program, with over 2,700 products eligible for resale in fiscal year 2024. A marketing campaign highlighted circular services like Buy back & resell, As-is, and spare parts to promote sustainability and affordability.

Advocacy

Supporting clean-energy incentives

IKEA U.S. supports climate action and the Inflation Reduction Act, believing investments in this area create economic growth and jobs, contributing to a more sustainable future.

Supporting zero-emission policies

IKEA U.S. advocates for policies that increase the supply of zero-emission delivery trucks and supports the expansion of EV charging infrastructure for commercial vehicles.

Supporting policies to build a more circular economy

IKEA U.S. supports legislation like California's SB 707 (Responsible Textile Recovery Act of 2024) and federal acts S. 1194 (Recycling and Composting Accountability Act of 2024) and S. 1189 (Recycling Infrastructure and Accessibility Act of 2024) to promote a circular economy.

More good things

ONE HOME, ONE PLANET U.S.

An event in Washington, D.C. brought participants together to brainstorm actions for a circular economy, affordable housing, and clean construction.

Expansion of EV infrastructure

IKEA U.S. plans to install 500 public fast chargers and over 300 fleet chargers, utilizing electric delivery vehicles in 48 locations.

A "veggie" good addition!

The IKEA plant dog was introduced in March 2024, offering the same taste and snap as the meat-based hot dog but at a lower price, expanding plant-based options.

Mardi Ditze, Country Sustainability Manager, IKEA U.S.

We're taking bold steps...

...to reduce our climate footprint in the U.S. In fiscal year 2024, IKEA generated approximately 770,111,079 kWh of renewable energy, exceeding its own consumption.

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

Better lives

Caring for people is at the heart of everything we do

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

We're focused on our people

IKEA believes its people are key to its success and strives to be a great place to work, fostering growth, welcome, and care. The company actively seeks co-worker feedback to improve benefits and the workplace.

Tack! (That's Swedish for "Thank you!")

In fiscal year 2024, eligible co-workers received a retirement fund allocation as appreciation. Full-time employees received $472.07.

Caring for co-workers

Expanded co-worker benefits include:

• A more inclusive family and medical leave policy, with up to 12 weeks of personal leave.
• A financial support program offering low-cost loans repaid via payroll deductions.
• A Roth feature added to the 401(k) plan for retirement savings flexibility.
• Support services for co-workers with diabetes and hypertension, including virtual physical therapy.
• New platforms to help co-workers and families navigate Medicare information.

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

We're better together

IKEA's growth and understanding of life at home are driven by its people. In fiscal year 2024, voluntary co-worker turnover fell by 18% to 22%, well below the industry average, reflecting positive results from listening to co-workers through annual surveys.

Our commitment to developing talent

IKEA's long-term talent approach focuses on continuous learning and growth, offering clear pathways for career development:

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 positions.
5. Stability and tenure: Valuing time in roles for career progression.
6. Internal promotion and selection: Prioritizing internal talent for opportunities.

Spanish language website

In July 2024, IKEA launched its Spanish language website to create a more inclusive and accessible experience for Spanish-speaking customers, offering a complete in-language e-commerce experience and support.

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

ED&I by the numbers

IKEA aims to foster an inclusive environment. Data transparency affirms its commitment to continuous improvement.

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

• Female: 45.9%
• Male: 53.1%
• Non-binary: 0.8%
• American Indian or Alaskan Native: 0.4%
• Native Hawaiian or other Pacific islander: 0.6%
• Undeclared: 1.6%
• Two or more races: 4.9%
• Asian: 7.5%
• Black or African American: 17.3%
• Hispanic or Latino: 18.2%
• White (not Hispanic or Latino): 63.6%

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

• Female: 54.5%
• Male: 45.5%
• Two or more races: 4.5%
• Undeclared: 4.5%
• Black or African American: 9.1%
• Hispanic or Latino: 25.3%
• White (not Hispanic or Latino): 42.4%

Trauma-informed design

In fiscal year 2024, IKEA unveiled a model home designed with trauma-informed principles at IKEA Live Oak, aiming to promote healing and well-being. This initiative, developed with WestEast Design Group and Towne Twin Village, uses sustainable materials and innovative solutions to set a standard for supportive housing.

Co-workers were trained on these principles, and the model home will serve as a research hub to study the impact of trauma-informed design.

Samantha Eisenman, Sustainability Business Partner, IKEA U.S.

Partnering for social change

IKEA U.S. provided over $1.5 million in donations to 220 nonprofits in fiscal year 2024.

Support for the LGBTQ+ community

Donations were made to True Colors ($100,000 from rainbow cake sales) and Rainbow Railroad ($50,000 from STORSTOMMA bag sales) to support LGBTQ+ youth and individuals facing persecution.

Updating our Progress Flag

The Progress Flag was updated to the Intersex-Inclusive Progress Flag, and the LGBTQ+ co-worker resource group was renamed LGBTQIA+.

Support for those experiencing homelessness

Collaborations with Family Promise provided $25,000 and over $65,000 in in-kind donations for homelessness prevention and shelter services.

Support for disaster relief

Over $150,000 in in-kind donations were provided to the American Red Cross. An Earth Month campaign raised $50,000 plus customer donations for disaster relief.

Support for kids after crises

A campaign with Save the Children raised $28,600, with IKEA contributing $50,000, to support social-emotional development programs for children.

Better company

Creating a more seamless shopping experience

IKEA U.S. focused on meeting customers where and how they want to shop, enhancing operations and customer service through new stores, improved fulfillment, and technology upgrades.

At your service

Discounted shipping & delivery

Additional discounted shipping and delivery options were introduced for IKEA Family loyalty members.

Standardized pricing for assembly

In March 2024, standardized pricing for product assembly via Taskrabbit was implemented, ensuring consistent pricing and improving the booking experience.

Buy now, pay later

The 'Buy now, pay later' program with Afterpay was introduced, offering a budget-friendly payment option.

Buy back & resell service

The Buy back & resell service is now available in nearly all stores, making circular services more accessible.

Improved customer satisfaction

IKEA U.S. achieved its highest customer satisfaction score to date.

Improved wait time

The Click & collect service efficiency was improved, reducing customer wait times by over 40%.

Embracing a digital transformation

IKEA U.S. advanced its digital transformation by creating customer touchpoints, developing internal solutions, and embedding digital practices for agility and collaboration. Improvements were made to e-commerce and fulfillment processes.

A new payment experience for IKEA for Business customers through Slope Tech Inc. was integrated, offering capital access and streamlined processes.

Amanda Effron, Chief Digital Officer, IKEA U.S.

IKEA improved the shopping experience with:

• Enhanced back-to-school college discount program.
• Integrated Taskrabbit assembly services online.
• Enabled mobile ordering, payment, and pickup at IKEA Restaurants and Bistros.
• Expanded Click & collect locations for convenience.
• Improved visibility of pick-up locations across channels.
• Launched a co-worker-focused platform for information accessibility.

Even better in FY25!

Future plans for fiscal year 2025 include:

• IKEA Roseville becoming a permanent Plan and order point.
• IKEA Arcadia transforming into a small store for a personalized shopping experience.
• The remodel of IKEA Memphis, featuring an updated Showroom and expanded Swedish Restaurant.
• Enhanced service offerings like Click & collect and Taskrabbit assembly.
• Store improvements including warehouse additions (Miami, West Sacramento) and Market Hall renovations (Stoughton, Charlotte).
• New Plan and order points opening in California, New Jersey, Arizona, Oregon, and Maryland.

FY24 business highlights

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

• E-commerce sales increased by 5.6%.
• 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.
• IKEA plans to leverage a $2.2 billion investment in fiscal year 2025 for omnichannel growth.

Key Metrics:

• Total sales (goods, food, services): $5,546,503,929
• E-commerce sales: $1,952,780,791
• Truck and parcel deliveries: ~5,500,000
• Store visitors: 62,982,810
• Click & Collect sales: $477,104,445
• Taskrabbit assembly projects: 124,790
• Online visitors: 440,109,361
• Food items sold (meatballs, plant balls, veggie balls): 62,074,265

IKEA in the U.S.

IKEA's vision is to create a better everyday life through well-designed, functional, affordable, high-quality home furnishings, produced with care for people and the environment. With nearly 40 years in the U.S. and 80 years globally, IKEA continually evolves to meet customer needs.

• 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

IKEA operates various facilities including Stores, Plan and order points, Merchandise pick-up locations, Distribution centers, Call centers, Offices, Taskrabbit services, Geomagical Labs, Wind farms, Solar parks, and Forests.