Inter IKEA Group Reports FY26: Building a Stronger IKEA for the Future

In Financial Year 2026 (FY26)*, Inter IKEA Group sharpened its focus on what matters most to customers: a relevant home furnishing range, low prices and a great customer experience.

Today, Inter IKEA Group announced total IKEA retail sales of EUR 43.8 billion (EUR 44.6 billion in FY25).Total retail sales represent the combined sales of all 13 IKEA franchisee groups and include IKEA products, food and services.

Inter IKEA Group reported revenues of EUR 25.9 billion (EUR 26.3 billion in FY25), an operating result of EUR 1.5 billion (EUR 1.7 billion in FY25) and a net result of EUR 1.4 billion (EUR 1.5 billion in FY25). Total Group revenues include franchise fees, sales of IKEA products to franchisees, and revenues from our own retail operations.

"We are determined to make IKEA even more affordable and accessible for the many people. Our business model is built on a simple idea: high volumes and low costs enable us to offer low prices. Sales have remained stable in recent years, despite challenging market conditions. But to reach more people with affordable home furnishing, we need to return to growth. In FY26, we took important steps to strengthen the business, create the conditions for growth and enable us to lower prices even further." says Jakub Jankowski, CEO of Inter IKEA Group

The IKEA business idea is to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them. FY26 saw the launch of 2,900 new and updated products, eight collections, including the return of iconic IKEA PS, where innovative and experimental design ideas come to life for a broader audience.

During the year, IKEA retailers ran a global campaign designed to help more people enjoy cooking and eating at home, with solutions that combine functionality, inspiration and affordability. 

Becoming more accessible and affordable

In FY26, IKEA retailers continued expanding their presence in existing markets through new small-format stores and opened the first IKEA store in New Zealand, together with online shopping and plan-and-order points nationwide.

At the same time, difficult decisions were taken in some markets, including store closures, while developing new ways to reach customers.

As part of a mutual effort to make IKEA products more affordable, Inter IKEA Group together with IKEA franchisees in Europe, contributed to lower prices. Together, these measures represent a total contribution of approximately EUR 1.2 billion in lower prices for IKEA customers (starting on 1 September 2026).

Creating a simpler and faster business

To address internal complexity and fragmentation in the organisation, Inter IKEA Group made necessary changes in the past year, which included a reduction of the workforce by 850 co-workers globally. Guided by our culture and values, these changes will help us become simpler, faster and more focused.

"These were difficult decisions that were not taken lightly. With clear goals, fewer priorities and simpler organisation, we can make decisions faster, reduce costs and create better conditions for lower prices. This will help us stay true to our vision and strengthen IKEA for the future." says Jakub Jankowski

Sustainability integrated into the business

Sustainability continues to be an integrated part of our business, from product development and sourcing to manufacturing and supply. In FY26, total greenhouse gas emissions decreased by 8% compared with FY25.

In FY26, 100% of electricity used in own operations came from renewable sources. Renewable energy production at IKEA sites increased by 46%, supported by the expansion of solar installations across IKEA Industry operations.

Inter IKEA Group continued to focus on the use of recycled and renewable materials. For example, the recycled cotton share was increased to 50% in selected textile products, including GURLI cushion covers and SOLFIBBLA duvet cover sets, without increasing customer prices with work ongoing to make this possible at scale.

Construction also started at the IKEA Industry factory in Zbąszynek, Poland, on a new facility that will turn wood waste from IKEA manufacturing into material for new products.

Looking ahead

Going forward, Inter IKEA Group will keep its focus on improving affordability and value for money for customers.

"We remain committed to creating home furnishing products that people want and love. By improving affordability, strengthening our range and improving the customer experience, we are building a stronger IKEA for the many people." says Jakub Jankowski.

The Insight DIY Perspective

• IKEA's third consecutive year of declining retail sales underlines the challenge facing even the strongest names in home improvement and homewares: affordability alone is not necessarily enough to stimulate demand when consumers remain cautious about discretionary spending. Its €1.2 billion price-reduction initiative is a significant commitment, but the real test will be whether lower prices translate into increased volumes, rather than simply putting further pressure on margins. The results also reinforce the importance of making the shopping experience more accessible, with smaller-format stores and online channels playing an increasingly important role alongside traditional out-of-town destinations.
  
  
• There is also a wider strategic message for the home improvement sector in IKEA's focus on simplifying its operations, refreshing its product range and finding efficiencies throughout its supply chain. The launch of 2,900 new and updated products demonstrates that the business is not relying on price alone, while its investment in turning manufacturing waste into new materials illustrates how sustainability and cost efficiency can increasingly work together. For competitors, IKEA's challenge – and opportunity – is to demonstrate that it can deliver design, quality and sustainability at accessible prices, while rebuilding the sales growth needed to support its business model.

Source : Inter IKEA

Image : IKEA

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