Online share rises to 30% while store visits increase by 1.3% across 736 million visits.

Furniture

IKEA retail sales fall 1.6% to Euro 39 billion as company faces weakened demand and cost pressures

IKEA retail sales fall 1.6% to Euro 39 billion as company faces weakened demand and cost pressures

Image: IKEA retail sales fall 1.6% to Euro 39 billion as company faces weakened demand and cost pressures in the 2025 financial year / Ingka Group

IKEA retail sales totaled Euro 39 billion for the 2025 financial year, marking a 1.6% decrease from Euro 39.6 billion in 2024. The drop in value comes despite a 1.6% rise in quantities sold and a 1.3% increase in store visits to 736 million. Online visits also rose by 4.6%, contributing to a 30% share of total sales, up from 28% last year. The decline in total value reflects deliberate pricing reductions aimed at maintaining affordability, according to Ingka Group.

The group cited cost-of-living pressures, economic and trade uncertainty, and ongoing supply chain disturbances as key challenges throughout the year. Still, the company maintained focus on affordability and customer accessibility both online and in-store.

Ingka Group opened 54 new retail locations globally during the financial year, including major sites in London, Delhi, and a large mixed-use investment in downtown Shanghai. This expanded footprint includes new smaller-format stores under testing in the UK, US, and Poland, designed for quicker, localized access to the product range.

The company also enhanced its digital operations, with upgrades to e-commerce logistics at locations such as the Soroksar store in Budapest, now serving as a central hub for online orders across Hungary. These improvements, along with enhanced digital tools, helped sustain the company’s highest customer satisfaction levels in six years.

Across all IKEA franchisees, total retail sales reached Euro 44.5 billion, with Ingka Group accounting for 87% of that total. In terms of environmental performance, Ingka Group has reduced its carbon footprint by 30.1% since 2016 while growing by 23.7%, and has already invested more than Euro 4.2 billion of its Euro 7.5 billion target to support renewable energy initiatives.

Ingka Group expects continued momentum for 2026, building on the results of 2025 despite external market challenges and volatile consumer confidence, according to Ingka Group.