IKEA Canada announces annual sales of $2.05 billion and +14.2% sales uplift
BURLINGTON, ON, Nov. 29, 2016 /CNW/ - Today, IKEA Canada announced total sales of $2.05 billion in Canada for the financial year ending August 31, 2016, an increase of 14.2% on the previous year. In its second year of double-digit growth, the company has solidified its position as the leader in life at home in the Canadian market.
IKEA's position as a market leader was further strengthened in fiscal year 2016, with market share growing by 1 per cent to 9.4%, as the company maintained national number one share position in the furniture and home furnishings category for the third consecutive year.
"We are delighted to report a second year of double-digit growth for IKEA in Canada," said David McCabe, Acting President, IKEA Canada. "Over the past year we have been focused on putting our customers at the centre of everything we do, really understanding how people live here in Canada and presenting our unique product range in a relevant and inspiring way. We have also been working hard to become more accessible and available whenever, wherever and however customers choose to interact with us and are pleased that in the last year over 115 million customers visited either our bricks and mortar units or online platforms."
In fiscal year 2016, IKEA Canada kicked off its ambitious coast-to-coast expansion plan to double the number of stores by 2025 by announcing a new store in Halifax, Nova Scotia, to open in fall 2017. At the same time, in a step to provide even more options for customers to interact with the brand, it opened six pick-up and order points in new markets and introduced the first Collection Point in Halifax, operated by a third party service provider.
While significant investments have been made in new and future developments, IKEA has continued to invest in improving the shopping experience in its existing stores. In fiscal year 2016, this included extensive remodeling of its restaurants and market halls in stores across the county. Store sales saw growth of 12.7% over the past year.
IKEA Canada continues to see strong online growth with a 41.3% sales uplift in fiscal year 2016. Investments were made into its eCommerce platforms to provide a more seamless and inspirational shopping experience, across all channels.
IKEA's business is built on deep understanding on how Canadians live their lives at home. Last year, 250 home visits were made to customers' homes in the areas around IKEA stores to understand how people are living in their homes, their challenges, needs and dreams. The knowledge gained in these home visits was used to present market-relevant and inspirational solutions in the stores.
As the company continues to grow, so does its co-worker base. In fiscal year 2016, more than 900 co-workers joined IKEA Canada, bringing the team to a total of 5,400 dedicated co-workers across the country. IKEA's commitment to creating a great place to work was recognized as the company was named one of Canada's top employers by Forbes Magazine, as well as one of Canada's Greenest Employers by Mediacorp for the eighth year running.
"We know that our people are the key to developing the business and delivering these strong results and I am so inspired by what we have been able to achieve together," continued Mr McCabe. "It is our co-workers who create the company's inner strength and make a difference to our customers and our business every day. Our co-workers truly bring our vision of 'creating a better everyday life for the many people' to life."
IKEA believes that sustainable living should be affordable for all and fiscal year 2016 has seen a continued focus on helping Canadians live a more sustainable life at home. For the first time ever, IKEA partnered with 24 households across the country to test IKEA products in their homes to reduce consumption of energy and water, reduce and sort waste, grow their own food and live healthier lifestyles. With hundreds of products designed to inspire and enable customer to live a more sustainable life at home, IKEA saw a 30% increase in sales of these products in fiscal year 2016.
ABOUT IKEA CANADA
IKEA is a leading home furnishing retailer with 375 stores in more than 50 countries worldwide, which are visited by 884 million people every year. IKEA Canada has 12 stores, an eCommerce virtual store, 6 Pick-up and order points in Quebec City and southern Ontario and two Collection Points in Halifax and Saskatoon. The company also recently announced plans to open stores in Halifax and Quebec City. Last year, IKEA Canada welcomed 28 million visitors to its stores and 88 million visitors to the IKEA.ca website. Founded in 1943, IKEA's business philosophy is to offer a wide range of products of good design and function at prices so low, the majority of people can afford them. For more information on IKEA, please visit: www.IKEA.ca.
SOURCE IKEA Canada
For further information: Stephanie Harnett, IKEA CANADA, Corporate Press Officer, 905-637-9440 ext. 6378, [email protected]