In recognition of its exceptional sales performance for the fiscal year 2023, Ikea U.S. revealed plans to implement retail price reductions and distribute bonuses to its co-workers. The company experienced a record-breaking year, surpassing $6.3 billion in total sales of goods and services, reflecting a 6.6% growth in revenue compared to the previous year. Additionally, e-commerce saw a 3.3% increase, and online visitation rose by 6.3% year-over-year.
“We take pride in sharing the success of yet another robust sales year with both our customers and co-workers. During challenging times, we consider it our duty to provide high-quality and affordable home furnishing solutions, making everyday life at home more convenient,” stated Javier Quiñones, CEO and chief sustainability officer of Ikea U.S. He emphasized that reducing prices is not merely a promotion but a commitment to customers, aiming to remain as affordable as possible and consistently lower prices whenever feasible, ensuring accessibility for all customers.
In November, Ikea U.S. reintroduced the “New Lower Price” initiative, demonstrating a commitment to meaningful affordability by reducing prices on hundreds of products across all U.S. stores and on Ikea.com. Iconic products like the Billy bookcase have been discounted by 20% or more. Throughout December, Ikea U.S. will continue offering additional discounted items as part of a “24 Days of Deals” promotion and its annual Winter Sale.
Alongside the sales figures, Ikea U.S. will distribute a total of $54.5 million to co-workers across two-thirds of its units as part of the “One Ikea Bonus,” a performance-based payout. This program serves as an incentive system for all Ikea co-workers, aligning with Ikea values of simplicity and togetherness.
Neena Potenza, chief human resources officer of Ikea U.S., emphasized the importance of investing in people, noting that co-workers are integral to Ikea’s success in the U.S. The bonus payout recognizes and rewards co-workers at all levels, aligning with the company’s values and contributing to its future success.
In addition to the bonus payout, Ikea U.S. will announce its contribution to the Tack! program for co-workers. “Tack!”, meaning thank you in Swedish, is a loyalty program within the Ingka Group, offering additional contributions to eligible co-workers’ pension funds as a gesture of appreciation for their loyalty and contributions, regardless of their position or salary level.
Early in 2024, Ikea U.S. will release a comprehensive FY23 Annual Summary, including updates on sustainability and equity initiatives for the company.
Source: Thomas Lester, Home Textiles Today.
