Conshohocken, PA - The IKEA Group net income amounted to EUR 3.3 billion ($3.7 billion US)* for the financial year 2014**. Market conditions continued to improve with strong performance in China and North America, and an upward trend in Europe. There were 716 million visits to the IKEA Group stores and more than 1.5 billion visits to IKEA.com
“FY14 was a good year for IKEA. I am happy to see increased growth in all our sales channels; in existing stores, in the opening of new stores and in e-commerce. We reached some important milestones towards becoming energy independent and saw a 58% increase in the sales value of products that enable people to live a more sustainable life at home. Sustainability is an integral part of our business strategy”, says President and CEO Peter Agnefjäll.
Total sales increased by 5.9% (adjusted for currency impact) from last year to EUR 28.7 billion. Together with the rental income from the shopping centre business, total revenue amounted to EUR 29.3 billion (+2.8%). The IKEA Group gained market share in almost all markets and entered a new country – Croatia. The largest markets in terms of sales were Germany, US, France, Russia and the UK.
“We have an ambitious growth agenda and at the same time we’re determined to have a positive impact on people and the planet. Our size gives us a unique opportunity to make a difference and contribute to positive change in society, for instance by making energy-efficient lighting both affordable and attractive for millions of people”, continues Peter Agnefjäll.
Within its own operations, the IKEA Group produced renewable energy equivalent to 42% of the total energy consumed and aims by the end of 2015 to have invested and committed to invest EUR 1.5 billion in renewable energy projects, mainly offsite wind farms and photovoltaic (PV) panels.
In FY14, EUR 200 million were set aside to a new loyalty programme Tack! and the amount for the One IKEA Bonus Program was increased by EUR 98 million, as a thank you to our co-workers.
“A key factor to our strong performance is that we have a long-term view, and we don’t aim to maximise short-term profits. We strive to continuously create better products at lower prices for our customers and to make substantial investments in our future”, says Peter Agnefjäll.
* Dollar to Euro calculated at $1.12, January 24, 2015.
**FY14 = Financial year 2014 period is September 1, 2013 - August 31, 2014.
IKEA US FY14 Highlights
US Sales and Services:
US comparable store sales increased by 4.24% in the period September 2013 - August 2014. This builds on growth of 6.7% in FY13 and 8% in FY12. Total sales including e-commerce were up 5.38%.
There were 39 US stores in FY14. New stores opened in Miami, FL, August, 2014 and Merriam, KS, September, 2014. Planned store openings: St Louis, MO, Fall 2015; Las Vegas, NV, Summer 2016; Memphis, TN, Fall 2016.
Expansion of existing stores includes Stoughton, MA and Canton, MI
IKEA installed additional solar energy systems to more US locations in FY14, with nearly 90% of our buildings outfitted with solar panels. IKEA announced two new stores; Merriam and Miami would open with solar panels. The IKEA Canton, Centennial, and Stoughton stores had their solar energy systems expanded by at least 25%. The IKEA Perryville and West Hampton distribution centers completed phase two of their solar panel installation.
The IKEA Merriam store will also have geothermal technology, a heating and cooling system.
In April 2014, IKEA US made its first wind farm investment in the US with the purchase of Hoopeston Wind in Hoopeston, IL. When completed, this project will generate enough safe, pollution-free energy to power approximately 30,000 US homes.
In the last 18 months, we have dropped the price of our E26 400 lumen bulbs (dimmable and non-dimmable) from $9.99 to $4.49 in order to make LED affordable for the many people; offering the lowest price on the market.
For more information on IKEA US community and environment programs, please read here: http://www.ikea.com/ms/en_US/this-is-ikea/reports-downloads/index.html
In June 2014, IKEA Retail US announced that as of January 1, 2015 it will adopt a new minimum wage structure for all hourly IKEA US co-workers based on local living costs. IKEA will utilize the Massachusetts Institute of Technology (MIT) Living Wage Calculator to determine these new wages. As a result of this change, 50% of IKEA US Retail co-workers saw an increase in their hourly pay rate. 22 US IKEA stores will have an hourly minimum wage of $10.10 or above; 33 retail locations will have an increase in their minimum wage because of this change.
About IKEA Group
The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. There are currently 315 IKEA Group stores in 27 countries. Additionally, there are 40 IKEA stores run by franchises. There are 40 IKEA stores in the US. In FY 14, IKEA Group had 716 million visitors to the stores and 1.5 billion visitors to IKEA.com. IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment. For more information, please visit www.IKEA.com, facebook.com/IKEAUSA, @IKEAUSANews, @IKEAUSA, http://pinterest.com/IKEAUSA/, www.youtube.com/IKEAUSA, www.theshare-space.com
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