On Thursday, Netherlands-based IKEA reported record-high annual sales due to price hikes and easing pandemic effects.
Inter IKEA, the furniture giant’s franchiser, said that sales at all IKEA stores and online rose 6.5 per cent in the 12 months through August, or 3.5 per cent measured in local currencies, to 44.6 billion euros (USD 43.3 billion).

Inter IKEA CEO Jon Abrahamsson said that retailers’ sales volumes had not increased during the year. He added that Inter IKEA had not passed on all input cost increases to the retailers but had assumed some itself.

Ingka Group, owning the bulk of stores, said separately its sales surged 5.6 per cent, or 2.2 per cent in local currencies, to 39.5 billion euros. It also said that sales increased in most of its markets and the availability of products improved overall.

On Thursday, Ingka CEO Jesper Brodin said Ingka had been able to start lowering prices again this summer as stocks started filling up thanks to recovering supply chains. Brodin further said that sales growth improved too towards the end of the year, to double-digit figures. In the new fiscal year, demand remained incredibly strong despite an overall drop in consumer confidence due to the energy crisis, rising cost inflation and the war in Ukraine.

In March, IKEA paused operations in Russia, which last year accounted for more than 4 per cent of Ingka’s sales.