IKEA sales decrease in Germany amid high inflation

Swedish-based furniture giant IKEA experienced a 4.3% fall in revenue this year in Germany, its largest foreign market, according to data released on Monday, reported dpa.

The company, Germany's leading furniture retailer, nonetheless achieved revenues of €6.16 billion, making its 50th year of business in Germany the second strongest to date.

This compares to a global decline of 5.3% for the 2023/24 fiscal year, ending on August 30, which IKEA said was largely due to lower prices on core products. The year was also marked by high inflation, rising interest rates and dampened consumer demand, IKEA said.

The company announced plans to improve accessibility across all sales channels, enhance sustainability and offer affordable prices in future.

In Germany, IKEA now generates about a quarter of its sales online. Online visitor numbers increased by 15% compared to the previous year, reaching 252.6 million and outpacing the stores which saw 79.5 million visitors - a decline of 2.9%.

The average spend per purchase online was €217.31, nearly double that of in-store purchases at €108.98. IKEA Food, meanwhile, saw its revenue stagnate at €266 million, compared to an increase of more than 30% the previous year.