October 2021: Ingka Group News

• Strong growth for IKEA sales for financial year 2021
• One of London’s most iconic shopping locations to be acquired by Ingka Investments
• IKEA joins climate change summit COP26 as a Partner
• World Economic Forum CEO Climate Leaders call for action on climate change
• IKEA Life at Home Report was released this month
• New automation system improves customer delivery times
• IKEA expansion continues in China with new Kunming store

Strong growth for IKEA sales for financial year 2021

This month, Ingka Group published strong IKEA retail sales of EUR 37.4 billion for the financial year 2021, which corresponds to an increase of 6.3% compared to last year, thanks to the efforts of all IKEA colleagues who contributed to the success. “We continued to show incredible commitment and entrepreneurship with a clear ambition to create a better IKEA,” said Jesper Brodin, CEO, Ingka Group. “All IKEA colleagues are a part of this success and as times continue to be challenging it’s important that we continue to keep the spirit of optimism and courage.”

Despite the challenges posed by the pandemic, the company continues to invest in becoming more accessible digitally and physically, more affordable and truly sustainable while meeting the needs of its customers.

Iconic shopping locations to be acquired by Ingka Investments

This week, Ingka Investments has signed a conditional purchase agreement to acquire prime real estate for IKEA Retail in the heart of London at 214 Oxford Street. The property comprises a total of 22,200 sqm over seven floors, with retail space on six floors. Part of the retail space will be used by IKEA UK & Ireland, with the store estimated to open in autumn 2023.

The investment supports the long-term plan to transform the IKEA Retail business and bring IKEA closer to customers by opening and testing new formats in cities responding to urbanisation and new shopping behaviors.

IKEA joins climate change summit COP26 as a Partner

IKEA UK & Ireland was recently announced as a Partner for United Nations Climate Change Conference COP26 in Glasgow, which is taking place between 31 October and 12 November. This partnership builds on the IKEA commitment to take climate action to become climate positive by 2030 and reach net-zero emissions no later than 2050 pursuing Science-Based Targets.

The UN Climate Change Conference COP26 is a pivotal moment to inspire and enable business, governments and people at home to take ambitious climate action. IKEA will be involved in initiatives and exhibitions during the climate change summit and IKEA UK & Ireland will be furnishing some key areas within the COP26 venue.

World Economic Forum CEO Climate Leaders call for urgent action on climate change

In an open letter, The WEF Alliance of CEO Climate Leaders, including Ingka Group CEO Jesper Brodin, call on policy makers to act now to transform climate policies and make bold commitments to tackle climate change. It is necessary to limit warming to 1.5 degrees by halving greenhouse gas emissions by 2030 and be net-zero by 2050. But no one can do this alone – businesses, governments and society need to work together. That is why this Alliance represents business leaders from diverse industries which use their influence to drive change.

Ingka Group, represented by Jesper Brodin, CEO, is the co-Chair of The WEF Alliance of CEO Climate Leaders, which is the largest CEO-led community in the world and aims to reduce 1 gigaton of emissions. It is the only CEO-led community in the world aiming to drive change spanning the entire supply chain.

IKEA Life at Home Report shows the impact of homes on mental health

Global research that was carried out on behalf of IKEA Retail (Ingka Group) reveals the vital role that home has played in meeting people’s mental wellbeing needs during the pandemic, after more than 34,000 people from 34 countries shared their thoughts on mental health and life at home.

Main findings from the IKEA Life at Home Report show that people who felt more positive toward their home during the last 12 months, have also seen their mental health improve. To achieve better balance at home, people say relaxation and alone time are the most important activities. The report points to a shift in what people want to do at home and how IKEA can support building the ideal home for the many people.

New automation system improves customer delivery times

The IKEA Covina store, located in the Los Angeles region in the U.S., introduced a new warehouse automation system that vastly improves order fulfillment to ensure customers receive their products quicker than ever before both for in the store or online orders.

IKEA is looking to harness the benefits of robotics at a larger scale, optimising fulfilment opportunities in stores and introducing ‘dynamic picking’ as part of this value-added service. The initiative at IKEA Covina is the next step after a pilot project in the IKEA Draper store in 2019, which has brought many opportunities to understand, test and improve on technology.

IKEA expansion continues in China with new Kunming store

IKEA just opened a store in Kunming, which marks the arrival of IKEA in the southwestern province of Yunnan. The new Kunming store extends over 25,318 sqm and is housed on the second floor of a three-level building, with a mall on the first floor. The store includes a restaurant, 18 check-outs, and a parking space for 1,055 cars and 300 e-bikes. 

As Kunming is a diverse city of culture, with open-minded residents who are receptive to new furnishing styles and ideas, the IKEA store hopes to attract new visitors. Since the first IKEA store opened in China in 1998, it has become one of the top five IKEA markets.

Earlier this month, IKEA opened the doors to a plan and order point in Split, Croatia, which is the country’s first of this kind. The 800 sqm space serves as a meeting place for customers and IKEA co-workers, who will advise and share expertise to get a customised result.