Company continues to transform its business; retailer announces plans to expand and introduce new concepts in Toronto’s city centre
BURLINGTON, ON–IKEA Canada announced sales of $2.53 billion for the financial year ending August 31, 2019, an increase of 6.1 per cent on the previous year. Detailed in the company’s 2019 Summary Report, the home furnishings retailer also reported strong digital engagement with 117.2 million visits to IKEA.ca, representing a 12 per cent lift and contributing to $261.2 million in ecommerce sales. In a rapidly-changing retail landscape IKEA grew in-store visitation to 31 million customers, an increase of 2.7 per cent. Amid a year of solid growth, the company continued to accelerate its business transformation and invest in long-term growth. To become more accessible to customers living in urban areas, IKEA Canada announced today, a new city centre market approach in Toronto.
“We continue to see positive growth in the Canadian market, all while innovating and developing our business for the future. We want IKEA to be there for our customers, whenever and however they choose to meet us,” said Michael Ward, CEO and Chief Sustainability Officer, IKEA Canada. “Our success in 2019 is a result of the hard work of our many co-workers across the country. As we transform, we continue to lead the business from our purpose, to create a better everyday life for the many people.”
Globally, over the past year IKEA has opened city centre locations in major cities like New York, Paris, Moscow and London. Toronto is the first market in Canada to introduce this new city centre approach, which includes becoming more accessible through new IKEA meeting places in the core, creating new experiences in existing stores, developing a more affordable and convenient service offer and enhancing digital solutions. With final concepts and locations still to be determined, the city growth plan will be inspired by how Torontonians live at home and developed based on decades of experience in the market.
“As one of the fastest growing and most diverse cities in North America, Toronto is a natural first choice for us to target growth in the city,” said Ward. “With a growing demand for convenience, there is a strong market potential for solutions that are more accessible and personalized. This new city approach will complement our existing stores in the market, enabling customers to shop seamlessly across all touchpoints, based on their individual needs and preferences.”
In Fiscal Year 2019, IKEA Canada took significant steps on its transformation journey to be more affordable, accessible and people and planet positive. The retailer grew its fulfilment network with new customer distribution centres in Richmond, BC and Kleinburg, ON and introduced more affordable services including $5 Click & Collect, TaskRabbit in-home assembly and lower price delivery. IKEA also created new in-store experiences including large-scale events like the IKEA PJ Party, inspirational workshops and new planning services.
With sustainability integrated throughout retail operations, IKEA Canada took key steps toward its commitments to be a circular and climate positive business by 2030. The retailer launched a new Sell-Back program, where gently-used products see a second-life in exchange for store credit. In May 2019, the company phased out plastic straws in Canada, months ahead of its global commitment to eliminate all single-use plastics by 2020. With the introduction of more sustainable food items like the plant-based veggie hot dog, IKEA Food saw a sales lift of 10 per cent to $113 million.
In 2019, IKEA grew to 7,300 dedicated co-workers nationwide. With the goal to be one of Canada’s top employers, IKEA introduced a new benefits program with a focus on wellness and an enhanced retirement program to better take care of its co-workers. IKEA believes embracing diversity, equality and inclusion is more than just the right thing to do, it is essential for long-term, sustainable growth. In 2019, the retailer reaffirmed its commitment to hire 250 refugees and rolled out its Refugee Employment Program to all units from coast to coast. IKEA co-workers proudly marched in Pride celebrations nationwide and the company contributed nearly $50,000 to LGBT+ organizations. Additionally to support a child’s right to play, IKEA partnered with Women’s Shelters Canada to create needed play areas in shelters across the country.
Looking forward, IKEA will continue to explore new shopping formats, digital solutions and ways to experience with IKEA, all with the goal to be the leading multichannel home furnishings retailer. For more information, visit the IKEA Canada 2019 Summary Report.
ABOUT IKEA CANADA
IKEA Group is a leading home furnishing retailer with 357 stores in more than 29 countries worldwide, which are visited by 817 million people every year. IKEA Canada has 14 stores, an eCommerce virtual store, five Pick-up and order points and 17 Collection Points. Last year, IKEA Canada welcomed 31 million visitors to its stores and 117 million visitors to IKEA.ca.