However, according to a Reuters report, management expects a recovery next year.
The Ingka Group, which owns the majority of IKEA stores worldwide, reported sales of €39.6 billion ($43.3 billion) for the fiscal year ended Aug. 31.
"In all our markets we experienced a slowdown of the economy and a slowdown of the home furnishing industry, almost simultaneously," said Jesper Brodin, CEO of Ingka Group. "We never experienced anything like that since 2008, to be honest."
The Ingka Group said it invested more than €2.1 billion in price reductions in its markets and its share of the global home furniture market remained stable at 5.7%. IKEA has benefited from households trading down as a global property slowdown hurt confidence, said Tolga Oncu, retail manager at Ingka Group.
For 2025, IKEA expects a boost to sales as lower interest rates drive more people to move house, which usually prompts buying of beds, sofas, and bookcases. Store visits increased by 3.3% to 727 million this year, slower than the 7.4% growth seen in 2023 and new openings fell to 41, from 60. Ingka plans 58 new locations worldwide in its 2025 financial year.
Its share of sales made online increased to 28%, up from 26% in 2023.
