IKEA Group announces total sales increased by 7.9% in FY2016

CONSHOHOCKEN, PA, 2016-Sep-15 — /EPR Retail News/ — For FY2016, IKEA Group total sales amounted to $37.6 billion (EUR 34.2 billion). Total sales translated into Euro increased by 7.1%. Adjusted for currency impact, total sales increased by +7.9%. Sales in comparable stores grew by 4.8%.

“IKEA Group had another good year and welcomed 783 million visits to our stores. In all of our meetings with the customers, we want to provide good quality products and inspiration for creating beautiful homes. Last year’s focus on the theme “It starts with the Food”, covering kitchen, cooking, eating, and the food-business, was a strong success and appreciated by the customers”, says Peter Agnefjäll, President and CEO of IKEA Group.

China remains one of the fastest growing markets for IKEA Group, together with Australia, Canada and Poland. Germany, retained its position as the largest market, closely followed by the US, and showed another year of record growth. Expansion also continued at pace and plans are on track to open the first stores in India and Serbia during the coming year.

On a journey to become the world’s leading multichannel home furnishing retailer, IKEA Group is increasing its focus on integrating physical and digital commerce to enable customers to shop in ways that suits their needs. In addition, IKEA Group opened 12 new stores, and 19 Pick up and Order points during the last year, an effort that will be supported by developments of a flexible distribution network, ensuring accessibility and convenience for customers.

IKEA Group continues to work towards having a positive impact on people and the planet by motivating customers and co-workers to lead a more sustainable life at home. In FY16, a 15% growth in LED bulbs sold is in line with the ambition to, until the end of 2020, sell over 500 million LED bulbs to IKEA customers. Switching to LED light bulbs will save money as well as energy as they can last up to 20 years, and use up to 85% less energy than traditional incandescent bulbs.

“In the coming year we will put even more effort in providing a great IKEA-experience for visitors across all channels. These efforts are only made possible by the engaged co-workers who have, as always, done an amazing job during the year”, concludes Peter Agnefjäll.

The IKEA Group Yearly Summary, which gives a full account of the performance for the year, as well as the IKEA Group Sustainability Report, will be published in December 2016. FY16 = Financial year 2016 encompasses the period between September 1, 2015 to August 31, 2016.

For further information, please contact:
Martina Smedberg
IKEA Group Media Relations
+46-709936376
ikea.pr@ikea.com

Mona Liss
IKEA US Corporate PR
Mona.Liss@IKEA.com

Source: IKEA

Ikea welcomes climate change agreement

Conshohocken, PA, 2015-12-15 — /EPR Retail News/ — The Paris agreement marks the beginning of a new journey to limit climate change. We welcome the long term agreement, which looks at many key aspects of climate change. We stand firm behind the commitment on emission reductions to hold the increase of temperature below 2°C and the commitment to make further efforts to limit the increase to 1.5°C.

During these two weeks we have seen countries working together, taking input from businesses and civil society. We are pleased to see that a strong, long term commitment has been made. We will continue to invest in renewable energy and to transform our business, with the confidence that governments are also committed to building a low carbon economy, regardless of the domestic political changes.

We particularly welcome the inclusion of the five year review process to track progress and set new and more ambitious targets as we move forward. Only long-term and bold targets can accelerate the transformational change needed to tackle climate change.

The years to come are crucial on the implementation of the agreement, and we as a business will commit ourselves to support these efforts to tackle climate change. This will be done in close cooperation our business partners, NGO’s and civils society in order to promote the transition to a clean economy, and to offer our customers the opportunity to live a more sustainable life at home.

Quote
“The Paris agreement marks the start of a new journey in the fight against climate change. Over the last two weeks we have seen countries working together, and businesses and civil society raising their voices for positive change. We are pleased to see that a solid commitment has been made. We will continue to invest in renewable energy and to transform our business with the confidence that governments are also committed to building a low carbon economy. Only together can we build a better future. “ Peter Agnefjäll, President and CEO, IKEA Group.

Press Contact Information
USA CORPORATE PUBLIC RELATIONS
Mona Astra Liss
1-610-834-0180 x 5852

USA PRODUCT PUBLIC RELATIONS
Janice Simonsen
1-610-834-0180 x 6349

USA EXPANSION
Joseph Roth
1-610-834-0180 x 6500

SOURCE: Inter IKEA Systems B.V.

IKEA Group announces 11.2% sales increase for the financial year 2015

FY 2015: The IKEA Group sales are up 11.2% – allowing for continued investments in sustainability and business development

Conshohocken, PA, 2015-12-14 — /EPR Retail News/ — The IKEA Group net income amounted to $3.9 billion (€ 3.5 billion)* for the financial year 2015**. Total sales increased by 11.2% from last year to $35.7 billion (€ 31.9 billion). Together with the rental income from the shopping center business, total revenue amounted to $36.6 billion (€ 32.7 billion) (+11.5%). Major investments were made to tackle climate change, such as the shift to 100% LED in the IKEA lighting range.

“We have a great year behind us and have invested considerably in sustainability, in creating a better offer as well as being more accessible,” says President and CEO Peter Agnefjäll as the IKEA Group launches its Yearly Summary and Sustainability report for 2015.

IKEA U.S. FY15 sales were $5 billion, sharing the top spot with Germany. IKEA U.S. saw continued growth in FY15 with comparable store sales increase by 4.5 percent and total sales – including ecommerce – increased by 8.6 percent outperforming both retail and home furnishing sectors.

Most of the global IKEA growth came from comparable stores, although new stores and online expansion contributed substantially to the result. While the growth is well-distributed across most markets, Germany shows record growth and also Southern Europe is seeing a positive development. North America continues to do well, and the newest IKEA market, South Korea, performs above expectations.

The growth enables IKEA Group to continue to strengthen its core business, in existing IKEA stores, and also in new ways of meeting the customers online, through new store formats, and at pick-up and order points. Continued investments will also be made in renewable energy and in products for a sustainable life at home.

“Action on climate change is both a driver for innovation and an opportunity to make our business even better, by for instance enabling our customers to live a more sustainable life at home,” continues Peter Agnefjäll. “In the past year, I’m particularly proud that we sold more than 90 million LED bulbs and lamps, not only enabling millions of households to cut on their energy bills, but also bringing significant energy savings,” says CEO Peter Agnefjäll.

IKEA Group continues to share its good result with co-workers. During FY15, $117.6 million (€ 105 million) were set aside to the loyalty program Tack! as a token of appreciation for all co-workers. Since it was introduced two years ago, a total of $341.6 million (€ 305 million) has been allocated.

*. Dollar to Euro calculated at $1.12, August 31, 2015.
**. FY15 = Financial year 2015 period is September 1, 2014 – August 31, 2015.

For further information, please contact:
Mona Astra Liss, US Corporate PR Director, Mona.Liss@IKEA.com,
610.834.0180, ext. 5852
Martina Smedberg, Media relations IKEA Group,
Martina.Smedberg@IKEA.com
+46 42 444 77 76

About IKEA Group
The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. There are currently 330 IKEA Group stores in 28 countries. Additionally, there are 40 IKEA stores run by franchises. There are 41 IKEA stores in the U.S. In FY 15, IKEA Group had 771 million visitors to the stores and 1.9 billion visitors to IKEA.com. IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment. For more information, please visit www.IKEA.com, facebook.com/IKEAUSA, @IKEAUSANews, @IKEAUSA, http://pinterest.com/IKEAUSA/, www.youtube.com/IKEAUSA, www.theshare-space.com, www.theshare-space.com/en/Blog

SOURCE: Inter IKEA Systems B.V.

IKEA Group and IKEA Foundation commit EUR 1 billion to accelerate the transition to a low-carbon economy and to support the communities most at risk

Conshohocken, PA, 2015-6-8 — /EPR Retail News/ — In this critical year for climate action, IKEA Group and IKEA Foundation are making bold new commitments to accelerate the transition to a low-carbon economy and to support the communities most at risk. Announced today, the EUR 1 billion total is made up of an IKEA Group commitment of EUR 600 million for investment in renewable energy and a EUR 400 million IKEA Foundation funding commitment to support communities most impacted by climate change. The announcements coincide with a key meeting in Bonn, where governments are preparing a global climate agreement to be negotiated at the COP21 meeting in Paris in December.

IKEA Group – The EUR 600 million commitment to renewable energy, announced today by the IKEA Group, builds on the EUR 1.5 billion invested in wind and solar since 2009. The company is on track to become energy independent, producing as much renewable energy as it consumes in its buildings, and has already committed to own and operate 314 offsite wind turbines and installed 700,000 solar panels on its buildings. The majority of the new commitment (EUR500 million) will be invested in wind energy and around EUR 100 million is expected to be invested in solar up to 2020.

“Climate change is one of the world’s biggest challenges and we need bold commitments and action to find a solution. That’s why we are going all in to transform our business, to ensure that it is fit for the future and we can have a positive impact. This includes going 100% for renewable energy, by investing in wind and solar, and converting all our lighting products to affordable LED bulbs, helping many millions of households to live a more sustainable life at home.” Peter Agnefjäll, President and CEO, IKEA Group.

IKEA Foundation – Building on many years of supporting children and families in some of the world’s poorest communities, the IKEA Foundation also announced its own commitment of EUR 400 million through 2020 to support families and communities who are most impacted by climate change.

The IKEA Foundation funds programmes to create long term opportunities for children living in some of the world’s poorest communities. In 2014, the IKEA Foundation contributed €104 million to more than forty partner organizations running programmes to benefit children in 46 countries. Since 2009, programmes funded by the IKEA Foundation have helped more than 178 million children worldwide. The new funding will help poor communities build resilience to climate change and improve lives by adopting renewable energy technologies in homes, schools and businesses.

“We’re working toward a world where children living in poverty have more opportunities to create a better future for themselves and their families. Tackling climate change is critical to achieving this goal.” Per Heggenes, CEO of the IKEA Foundation

About the IKEA Group
Our vision is to create a better everyday life for the many people and we offer well designed, functional and affordable, high quality home furnishing, produced with care for people and the environment. The IKEA Group has 322 stores in 28 countries. In addition there are more than 40 stores run by franchisees outside the IKEA Group. The IKEA Group had 716 million visitors to the stores during FY14 and more than 1.5 billion visitors to the web. For more information, please visit www.IKEA.com

Contact:
Jamie Rusby, jamie.rusby@ikea.com, +46 723 527 369

About IKEA Foundation
The IKEA Foundation is the philanthropic arm of INGKA Foundation, the owner of the home furnishings company IKEA Group. We aim to improve opportunities for children and youth in some of the world’s poorest communities by funding holistic, long-term programmes that can create substantial, lasting change. The IKEA Foundation works with strong strategic partners applying innovative approaches to achieve large-scale results in four fundamental areas of a child’s life: a place to call home; a healthy start in life; a quality education; and a sustainable family income. Learn more at www.ikeafoundation.org and www.facebook.com/IKEAfoundation

Contact:

Radu Dumitraşcu, radu.dumitrascu@ikeafoundation.org, +31 6 556 98 570

Strong Sustainability Progress: The IKEA Group’s People & Planet Positive strategy on track and delivering good results

Conshohocken, PA, 2015-1-30 — /EPR Retail News/ — The IKEA Group Sustainability Report for fiscal year (FY14*) 2014, released today, shows its People & Planet Positive strategy is on track and delivering good results. Sustainability performance is announced today alongside strong financial results, which show an increase in total sales to EUR 28.7 billion ($32.1 billion**), a 5.9% increase (adjusted for currency impact) from last year.

Sustainability highlights from FY14:

  • During the year, IKEA Group committed to own a further 87 wind turbines, bringing the total to 224***, and installed 150,000 solar panels, increasing the total to 700,000 and taking the company a step closer to producing more renewable energy than the total energy it uses by 2020. By the end of 2015, we aim to have invested and committed to invest EUR 1.5 billion in renewable energy projects.
  • The sales value of products for a more sustainable life at home passed €1 billion, a 58% increase compared with FY13. These products enable people to save or generate energy, reduce water use, cut waste and live healthier lives.
  • 75% of all lighting products sold were LED or compatible with LED bulbs, which use 85% less energy and last 20 times longer than traditional (incandescent) bulbs. The entire IKEA lighting range will convert to LED by September 2015.
  • €66 million saved through energy efficiency efforts in stores and warehouses since FY10.
  • IKEA Group is one of the world’s largest buyers of FSC-certified wood in the retail sector, and 41% of its wood was FSC certified or recycled in FY14. All wood was sourced from suppliers that meet the IKEA forestry standard.
  • The share of cotton from more sustainable sources used in IKEA products reached 76%, meaning farmers use less chemicals and water, whilst increasing their earnings. IKEA is on track to reach its goal of 100% by the end of August 2015.
  • 47% of managers are women.
  • The IKEA Foundation donated €104 million in 2014 to projects that support millions of children in some of the world’s poorest communities.

“Sustainability is a key driver of innovation and an integral part of our business strategy. We see it as a great opportunity to improve our business. That’s why we’ve set ambitious 100% targets, for example for our LED lighting range, important raw materials and renewable energy. We are determined to grow IKEA while also having a positive impact on people and the planet,” Peter Agnefjäll, President and CEO, IKEA Group.

“Through our People & Planet Positive strategy, we want to make IKEA completely sustainable. I’m proud to say that we’re making good progress in transforming the supply of key materials, with over ¾ of our cotton and 41% of our wood now from more sustainable sources, and we’re investing in renewable energy to bring us closer to our goal of being energy independent. And by making energy- efficient LED affordable and attractive, we’ve enabled millions of people to live a little more sustainably,” Steve Howard, Chief Sustainability Officer, IKEA Group.

*FY14 = Financial year 2014 period is September 1, 2013 – August 31, 2014.**Dollar to Euro calculated at $1.12, January 24, 2015. *** This total does not include recent commitments made in FY15 which bring the total to 279.

IKEA US FY14 Highlights

  • IKEA installed additional solar energy systems to more US locations in FY14, with nearly 90% of our buildings outfitted with solar panels. IKEA announced two new stores; Merriam and Miami would open with solar panels. The IKEA Canton, Centennial, and Stoughton stores had their solar energy systems expanded by at least 25%. The IKEA Perryville and West Hampton distribution centers completed phase two of their solar panel installation.
  • The IKEA Merriam store will also have geothermal technology, a heating and cooling system.
  • In April 2014, IKEA US made its first wind farm investment in the US with the purchase of Hoopeston Wind in Hoopeston, IL. When completed, this project will generate enough safe, pollution-free energy to power approximately 30,000 US homes.
  • In the last 18 months, we have dropped the price of our E26 400 lumen bulbs (dimmable and non-dimmable) from $9.99 to $4.49 in order to make LED affordable for the many people; offering the lowest price on the market.
  • For more information on IKEA US community and environment programs,please read here.

For further information, please contact:
Mona Astra Liss, US Corporate PR Director, Mona.Liss@IKEA.com
610.834.0180, ext. 5852
Martina Smedberg, Media relations IKEA Group, Martina.Smedberg@IKEA.com
+46 42 444 77 76

The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. There are currently 315 IKEA Group stores in 27 countries. Additionally, there are 40 IKEA stores run by franchises. There are 40 IKEA stores in the US. In FY 14, IKEA Group had 716 million visitors to the stores and 1.5 billion visitors to IKEA.com. IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment. For more information, please visit www.IKEA.com, facebook.com/IKEAUSA, @IKEAUSANews, @IKEAUSA, http://pinterest.com/IKEAUSA/, www.youtube.com/IKEAUSA, www.theshare-space.com, www.theshare-space.com/en/Blog

The IKEA Sustainability Report FY14 is available at www.IKEA.com on each country site (under About IKEA, People & Planet).

The IKEA Group reports EUR 3.3 billion net income for the financial year 2014

Conshohocken, PA, 2015-1-30 — /EPR Retail News/ — The IKEA Group net income amounted to EUR 3.3 billion ($3.7 billion US)* for the financial year 2014**. Market conditions continued to improve with strong performance in China and North America, and an upward trend in Europe. There were 716 million visits to the IKEA Group stores and more than 1.5 billion visits to IKEA.com

“FY14 was a good year for IKEA. I am happy to see increased growth in all our sales channels; in existing stores, in the opening of new stores and in e-commerce. We reached some important milestones towards becoming energy independent and saw a 58% increase in the sales value of products that enable people to live a more sustainable life at home. Sustainability is an integral part of our business strategy”, says President and CEO Peter Agnefjäll.

Total sales increased by 5.9% (adjusted for currency impact) from last year to EUR 28.7 billion. Together with the rental income from the shopping centre business, total revenue amounted to EUR 29.3 billion (+2.8%). The IKEA Group gained market share in almost all markets and entered a new country – Croatia. The largest markets in terms of sales were Germany, US, France, Russia and the UK.

“We have an ambitious growth agenda and at the same time we’re determined to have a positive impact on people and the planet. Our size gives us a unique opportunity to make a difference and contribute to positive change in society, for instance by making energy-efficient lighting both affordable and attractive for millions of people”, continues Peter Agnefjäll.

Within its own operations, the IKEA Group produced renewable energy equivalent to 42% of the total energy consumed and aims by the end of 2015 to have invested and committed to invest EUR 1.5 billion in renewable energy projects, mainly offsite wind farms and photovoltaic (PV) panels.

In FY14, EUR 200 million were set aside to a new loyalty programme Tack! and the amount for the One IKEA Bonus Program was increased by EUR 98 million, as a thank you to our co-workers.

“A key factor to our strong performance is that we have a long-term view, and we don’t aim to maximise short-term profits. We strive to continuously create better products at lower prices for our customers and to make substantial investments in our future”, says Peter Agnefjäll.

* Dollar to Euro calculated at $1.12, January 24, 2015.
**FY14 = Financial year 2014 period is September 1, 2013 – August 31, 2014.

IKEA US FY14 Highlights

US Sales and Services:

  • US comparable store sales increased by 4.24% in the period September 2013 – August 2014. This builds on growth of 6.7% in FY13 and 8% in FY12. Total sales including e-commerce were up 5.38%.

Expansion:

  • There were 39 US stores in FY14. New stores opened in Miami, FL, August, 2014 and Merriam, KS, September, 2014. Planned store openings: St Louis, MO, Fall 2015; Las Vegas, NV, Summer 2016; Memphis, TN, Fall 2016.
  • Expansion of existing stores includes Stoughton, MA and Canton, MI

Sustainability:

  • IKEA installed additional solar energy systems to more US locations in FY14, with nearly 90% of our buildings outfitted with solar panels. IKEA announced two new stores; Merriam and Miami would open with solar panels. The IKEA Canton, Centennial, and Stoughton stores had their solar energy systems expanded by at least 25%. The IKEA Perryville and West Hampton distribution centers completed phase two of their solar panel installation.
  • The IKEA Merriam store will also have geothermal technology, a heating and cooling system.
  • In April 2014, IKEA US made its first wind farm investment in the US with the purchase of Hoopeston Wind in Hoopeston, IL. When completed, this project will generate enough safe, pollution-free energy to power approximately 30,000 US homes.
  • In the last 18 months, we have dropped the price of our E26 400 lumen bulbs (dimmable and non-dimmable) from $9.99 to $4.49 in order to make LED affordable for the many people; offering the lowest price on the market.
  • For more information on IKEA US community and environment programs, please read here: http://www.ikea.com/ms/en_US/this-is-ikea/reports-downloads/index.html

People:

  • In June 2014, IKEA Retail US announced that as of January 1, 2015 it will adopt a new minimum wage structure for all hourly IKEA US co-workers based on local living costs. IKEA will utilize the Massachusetts Institute of Technology (MIT) Living Wage Calculator to determine these new wages. As a result of this change, 50% of IKEA US Retail co-workers saw an increase in their hourly pay rate. 22 US IKEA stores will have an hourly minimum wage of $10.10 or above; 33 retail locations will have an increase in their minimum wage because of this change.

For further information, please contact:
Mona Astra Liss, US Corporate PR Director, Mona.Liss@IKEA.com,
610.834.0180, ext. 5852
Martina Smedberg, Media relations IKEA Group, Martina.Smedberg@IKEA.com
+46 42 444 77 76

About IKEA Group
The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. There are currently 315 IKEA Group stores in 27 countries. Additionally, there are 40 IKEA stores run by franchises. There are 40 IKEA stores in the US. In FY 14, IKEA Group had 716 million visitors to the stores and 1.5 billion visitors to IKEA.com. IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment. For more information, please visit www.IKEA.com, facebook.com/IKEAUSA, @IKEAUSANews, @IKEAUSA, http://pinterest.com/IKEAUSA/, www.youtube.com/IKEAUSA, www.theshare-space.com

IKEA Group announces expansion of residential solar offer during UN Climate Summit and Climate Week in New York

IKEA Group announces expansion of residential solar offer during UN Climate Summit and Climate Week in New York. It also unveils a new commitment for all plastic material used in its home furnishing products to be 100% renewable and/or recycled by 2020.

CONSHOHOCKEN, PA, 2014-9-23— /EPR Retail News/ — IKEA Group announced today that before the end of this year, it will expand its residential solar offer from the UK to the Netherlands and Switzerland, making solar energy affordable to many more homeowners. Over the coming 18 months the offer will roll out to a further six countries.

As well as helping its customers to access renewable energy, the company is also making strong progress on the €1.5 billion it has committed to invest in wind and solar power for its own operations. So far it has installed 700,000 solar panels on its stores and buildings and has committed to own and operate 224 wind turbines as part of its goal to match 100% of its energy use with renewable energy generation by 2020.

The company also highlighted a commitment for all plastic material used in its home furnishing products to be 100% renewable and/or recycled by 2020 . Together the announcements mark a significant step forward in the company’s People & Planet Positive sustainability strategy.

The announcements were made in New York by Peter Agnefjäll, the IKEA Group President and CEO, on the eve of the UN Climate Summit which he is attending to call for ambitious measure to tackle climate change.

“We know that our customers want to save energy and live more sustainably at home, but we believe they shouldn’t spend more money or time to do so. That is why we are determined to make sustainability both affordable and attractive to as many people as possible. I am delighted that we can now commit to bringing affordable home solar to a further eight countries, starting with the Netherlands and Switzerland,” said Peter Agnefjäll.

The solar systems will be available in the first store in the Netherlands on 28th October and the first Swiss store in mid December, through a partnership with Hanergy. The offer will include full installation and warranties in an affordable package, enabling customers to significantly reduce their household energy bills. The systems are on sale now in all 18 UK stores at prices that have enabled more people to invest in solar when it was previously out of their reach.

The new plastics commitment is part of a comprehensive plan to transform the sustainability of the materials IKEA uses. The commitment means that by 2020, the plastic in every IKEA product – from a washing up brush to a garden chair – will be made from waste material or from renewable material such as wood waste. This change could cut CO2 emissions by an estimated 700,000 tonnes each year, equivalent to the annual emissions from electricity use in 100,000 US homes.

“The scale of the climate challenge requires bold commitments and bold action. That is why we are committing to go 100% renewable or recycled material for the plastic we use in our home furnishing products, building on our 100% goal for renewable energy, and our goal for 100% of our cotton and wood to come from more sustainable sources”, said Mr Agnefjäll.

For more information, please contact:
Jamie Rusby, Jamie.rusby@ikea.com, +46 723 527 369

About IKEA Group
Our vision is to create a better everyday life for the many people and we offer well designed, functional and affordable, high quality home furnishing, produced with care for people and the environment. The IKEA Group has 315 stores in 27 countries. In addition there are more than 40 stores run by franchisees outside the IKEA Group. The IKEA Group had 716 million visitors during FY14 and 1.5 billion people visited IKEA.com. www.ikea.com

IKEA recalls RUND handmade glass mug
IKEA kindly asks customers who have a RUND glass mug to immediately stop using the mug and bring it back to any IKEA store for full refund.