Ikea posts fall in annual sales

STOCKHOLM, Oct 10 (AFP): Ikea reported Thursday that its annual sales fell in value after the world's biggest furniture retailer lowered prices to revive traffic at its online and brick-and-mortar stores.

The Swedish company said sales amounted to 45.1 billion euros ($49.3 billion) in its fiscal year ending in August, down 5.3 per cent from the previous 12-month period.

"This is mainly due to lower prices. The result was achieved despite a struggling global economy and shrinking home furnishing market," Inter Ikea, the group's main holding, said in a statement.

"However, with Ikea continuously investing in lower prices its market share has increased," the statement added.

Ikea announced rare price increases-averaging nine per cent-in December 2021 as inflation climbed worldwide due to supply chain bottlenecks following the Covid pandemic.

The group began to lower prices in September 2023 to improve sales volume at its stores.

Ikea said physical store visits increased by 4.5 per cent following the price drops while online traffic jumped by 21 per cent.

"Volumes are up with increasing consumer demands," it added.