IKEA CEO vows to bring growth back after sales fall for third year
IKEA sales across 64 countries were €43.8 billion in the financial year ending Aug 31, down 2% compared to 2025.
Swedish furniture giant IKEA announced on November 6 that it witnessed a third consecutive year of declining sales, despite cutting prices and expanding its store network. The company reported a 2% drop in sales, amounting to €43.8 billion (S$63 billion) for the fiscal year ending August 31, 2026. CEO Jakub Jankowski acknowledged the stagnation in sales for several years and expressed the need to restore growth to make affordable home furnishings accessible to more consumers.
Inter IKEA, the company that owns the IKEA brand and franchises it to retailers, aims to sell more products and reduce costs for families facing rising living expenses. Jankowski attributed the smaller purchasing volumes and reduced efficiency in production capacity to weaker consumer demand. The company also faced higher freight costs due to the Iran war-driven energy price surge.
To address the shifting consumer behavior, IKEA has moved towards smaller, city-center stores that are more accessible without requiring a vehicle. Jankowski noted the growing number of people without driving licenses or cars and the necessity to be closer to shoppers. As a result, the company opened 15 small stores in Europe during its 2026 financial year, while closing 7 stores in China where demand was weak.
In an effort to cut costs, Inter IKEA also laid off 850 employees in May.
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