Ikea sees online sales soar by 73% as it continues pandemic resurgence

Ikea saw its online sales soar by 73 per cent, reaching €41.9 billion (£35.3 billion) in its 2021 financial year to August 31.

The Swedish furniture retailer’s online offerings accounted for 26 per cent of all retail sales as it started its recovery from the effects of the pandemic.

The figure marks a 5.8 per cent increase from last year and a 1.5 per cent increase from 2019.

Over 70 per cent of the retailer’s sales took place in store and 3 per cent were through services.

Ikea stopped producing the Ikea Catalogue in response to the change in consumer shopping behaviour which was brought on mainly by the pandemic and the measures introduced to curb it.

The company’s website saw over five billion visitors during the year.

READ MORE: Ikea struggling to meet consumer demand amid truck shortage

There were 45 new bricks-and-mortar locations that were added to the company’s roster, including first locations in Mexico and Slovenia.

There are plans to open 60 more in the current financial year before opening an average of 50 new shops a year in 17 markets by the end of its 2023 financial year.

“All so our customers can touch and try Ikea products before they buy,” Ikea chief executive of franchise businesses Jon Abrahamsson Ring said.

Ring also admitted the business had seen a “substantial drop in availability” during the 2021 financial year, which made it difficult to keep Ikea shops and warehouses in stock.

This trend is also predicted to continue as a result of rising transport and raw material costs and the ongoing global supply chain disruption.

“At Ikea, we want to be affordable for as many people as possible,” Ring added.

“Despite rising costs, we’ll continue to provide great, responsibly-produced products at the lowest possible prices.”

Ikea’s supply chain accounts for two-thirds of its climate footprint, which includes its production at suppliers.

It has responded with a program to help its suppliers move to 100 per cent sustainable energy sources while its own industry is now 90 per cent powered by renewable sources.

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