IKEA Canada achieved growth of 1.3 per cent as sales climbed to $2.63B
BURLINGTON, ON, Nov. 8, 2022 /CNW/ - Today, IKEA Canada announced plans to expand its successful small-store format with a new location in Scarborough, Ontario. The expansion comes as IKEA Canada's newly published 2022 Summary Report reveals national store visits have increased by 123 per cent to 26 million, while IKEA Canada sales increased 1.3 per cent to $2.6 billion in the financial year ending August 31, 2022.
The new IKEA location is set to open at the Scarborough Town Centre in the summer of 2023, serving residents in the east end of Toronto. The nearly 7,500 m2 ground floor location at the shopping centre's northeast end will become the company's second small-format store in Canada, following the launch of the IKEA Toronto Downtown - Aura location earlier this year. This scaled retail concept brings home to life in a new way. It takes the inspiring IKEA experience to the doorstep of urban residents and is proving popular with hundreds of thousands of customers who have made visits to the downtown store since it opened in May 2022.
"We are grateful Canadians are returning to connecting in-person, including at our IKEA stores, Plan and order points, and Design studios, and are pleased to announce our continued Canadian expansion," said Michael Ward, CEO and Chief Sustainability Officer, IKEA Canada. "The planned Scarborough store is part of our broader investment in sustainability, affordability, and omnichannel shopping experiences that help to make us more accessible to our customers."
The 2022 Summary Report reflects a focus on making circularity and sustainable living solutions more relevant for customers across the IKEA business – from furniture to food. For example, Canadian consumers turned thousands of preloved products into in-store credit this year through the IKEA Sell-Back program, while more than 78,000 spare parts orders were fulfilled, and hundreds of Canadians attended Care and Repair workshops to maintain and extend the life of their IKEA furniture. Meanwhile, Canada has become one of the strongest global markets for the sale of plant balls, the recently launched plant-based alternative to IKEA's classic meatballs.
"Our impact on the planet starts with the positive impact we make in the lives of our people. The continued growth and expansion we have achieved in Canada would not have been possible without the hard work, determination and skills of the co-workers who are at the heart of the IKEA Canada business. It's only fitting that we show our gratitude through our actions," added Ward.
IKEA Canada's investment in its people included the disbursement of a one-time financial gift estimated at $6 million to eligible co-workers, in recognition of the contribution they made during the pandemic. The company has also expanded its benefits, enabling co-workers to use their Wellness Spending for a wider range of health services such as alternative medicine, holistic health services, Indigenous traditional healing practices, and gender affirmation.
Other key findings in the IKEA 2022 Summary Report include:
- Despite the in-store sales resurgence, online shopping continues to play an important role in the IKEA Canada business. Customers made over 189M online visits to IKEA.ca and the IKEA app between September 2021 and August 2022.
1.77M orders were delivered, while 776,510 Click and collect orders were processed. - Food sales increased 160 per cent to $97.5M, with customers enjoying more than 20M meatballs, nearly 7M plant balls, more than 1.7M hot dogs and 1.8M frozen yogurts.
- Canada's most-purchased items included FRAKTA shopping bags, as well as classic, affordable dinnerware from the OFTAST Series.
To learn more about the 2022 results achieved by IKEA Canada, visit IKEA.ca/Reports.
Founded in 1943 in Sweden, IKEA is a leading home furnishing retailer, offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them. IKEA Canada is part of Ingka Group which operates 389 IKEA stores in 32 countries, including 15 in Canada. Last year, IKEA Canada welcomed 26 million visitors to its stores and 189 million visitors to IKEA.ca. IKEA Canada operates business through the IKEA vision - to create a better everyday life for the many people and does so through its local community efforts and sustainability initiatives. For more information on IKEA Canada, please visit IKEA.ca.
SOURCE IKEA Canada
Lisa Huie, PR Leader, IKEA Canada, [email protected]
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