During the fiscal year, IKEA Retail sales touched EUR 36.7 billion, up five percent from EUR 34.8 billion in FY18, at constant currency rate. The total revenue was EUR 39.1 billion, and online sales grew by more than 46%, amounting to 11% of total IKEA Retail sales.
Ingka Group is a strategic partner in the IKEA franchise system, operating 374 IKEA stores in 30 countries. In FY19, Ingka Group had ecommerce in all 30 countries. During the year, the company started ecommerce in China and India, making the online store available to many more people.
In October 2018, the company’s ecommerce solution went live in China, covering 227 cities and enabling up to 95 percent of the population to shop online at IKEA.com. At the end of FY19, ecommerce accounted for five percent of total IKEA Retail sales in China.
In August 2019, IKEA Retail India first launched its online store in the megacity Mumbai, as part of an ambition to reach 100 million customers in three years with an omnichannel approach.
“Digital brings amazing opportunities for us. With the range at the core, fuelled by digital, we can adapt to consumer needs faster than ever before. We can truly be a companion for inspiration, for accessibility – and a beacon of hope by being a good example of people and planet positive,” said Barbara Martin Coppola, Chief Digital Officer, Ingka Group, in the Annual Summary & Sustainability Report for FY19.
Ingka Group is cognizant of the fact that as customers shop more online, emissions from home deliveries will grow to be a bigger part of the climate footprint. Deliveries also contribute to increased air pollution and congestion in cities.
To tackle this, the company aims to have 100 percent electric or other zero-emission home deliveries in all Ingka Group countries by 2025, and also find new ways of working to reduce congestion. Ingka Group does not have its own delivery fleet but partners with transport providers to switch to electric vehicles and find zero-emission alternatives.
A year ahead of target, all IKEA home deliveries in Shanghai are made by electric vehicles. Ingka Group is on track to reach 100 percent electric or emission-free home deliveries by the end of 2020 in Amsterdam, Los Angeles, New York, and Paris.