IKEA expenses
Posted: Thu Feb 13, 2025 11:01 am
IKEA’s store sales grew 13% more in 2022 than the previous year, when many stores closed due to COVID-19. More than 800 million customers visited IKEA stores in FY2022, up from 775 million in FY2021. Store sales increased in Europe, where lockdowns were severe in FY2021. Online sales fell by 10% in FY2022 compared to the previous year, but stabilized in the spring.
IKEA’s e-commerce platforms saw over 4 billion visitors in 2022, down from 5 billion the previous year. The IKEA business model continues to thrive, making a large portion of its money from franchising. The company has numerous stores around the world, each of which pays an annual franchise fee. In addition to leveraging sustainability to attract more customers, IKEA attributes its success to lower operating costs, offering affordable yet original furniture, and upselling.
IKEA's main operating expenses include utilities, employee costs and rent. The company recently invested employment data approximately $100 million in print, digital and national TV advertising. IKEA invests in premium ad units and advertises in more than 250 different media properties.
The company has hired more employees in fiscal 2022 to manage the inefficiencies and complexity of its supply chain, particularly those affected by the war in Ukraine. It has also developed resources to increase its capacity for the digital and strategic changes needed to boost IKEA’s value chain and its online shopping experience.
IKEA’s e-commerce platforms saw over 4 billion visitors in 2022, down from 5 billion the previous year. The IKEA business model continues to thrive, making a large portion of its money from franchising. The company has numerous stores around the world, each of which pays an annual franchise fee. In addition to leveraging sustainability to attract more customers, IKEA attributes its success to lower operating costs, offering affordable yet original furniture, and upselling.
IKEA's main operating expenses include utilities, employee costs and rent. The company recently invested employment data approximately $100 million in print, digital and national TV advertising. IKEA invests in premium ad units and advertises in more than 250 different media properties.
The company has hired more employees in fiscal 2022 to manage the inefficiencies and complexity of its supply chain, particularly those affected by the war in Ukraine. It has also developed resources to increase its capacity for the digital and strategic changes needed to boost IKEA’s value chain and its online shopping experience.