Ikea, the Swedish furniture giant, is preparing to transform its business model to adapt to the new expectations of urban consumers. Despite a 32% drop in net profit for the 2024-2025 financial year, Ikea plans to innovate by moving into city centers with smaller stores. Find out how this strategy could change the way we consume Ikea products.
3 things you need to know
- Ikea recorded a 32% drop in net profit for the 2024-2025 financial year, but saw its customer numbers and volumes increase by 3% thanks to lower prices.
- In 2026, Ikea will open small stores in city centers, no larger than 2,500 m², to get closer to consumers.
- Ikea continues to focus on the kitchen and dining sectors, notably with the launch of a new entry-level kitchen, Knoxhult.
Financial figures: a mixed year
For the 2024-2025 financial year, Ikea reported a 32% decline in net profit and a slight 1% decrease in sales. However, these results were partially offset by a 3% increase in customer numbers and sales volumes. This momentum is partly attributed to a strategy of lowering prices, implemented to remain competitive with other home furnishings and furniture sales platforms.
New store format: focusing on city centers
Historically, Ikea stores were mainly located on the outskirts of large cities. In 2026, the brand plans to open more compact stores, with a maximum surface area of 2,500 m², integrated into city centers. These spaces will offer flagship products such as decorations, tableware, and small furniture. This initiative responds to Ikea’s desire to make its products more accessible in terms of proximity and speed of access.
The new stores will target not only city centers but also medium-sized towns where Ikea’s presence is still limited. The brand plans to use existing spaces or buildings, rented rather than built, to minimize the impact on real estate.
Focus on kitchens and dining
Kitchens remain a priority sector for Ikea, which already furnishes one in four French kitchens. The company continues to strengthen its presence in this area by launching a new entry-level kitchen, Knoxhult, priced from €270. This strategy aims to attract customers looking for affordable and functional solutions.
At the same time, Ikea is focusing on its food offering, particularly its famous meatballs, which sell 40 million units each year. This sector contributes significantly to the brand’s revenue.
Competition and adaptation: the pricing challenge
Faced with competition from platforms such as Temu and Shein, Ikea has been forced to review its pricing policy. The price reduction, averaging around 10%, has enabled the brand to remain attractive despite the difficult economic climate. This competitiveness strategy is set to continue in 2026, with the aim of further expanding the loyal customer base while attracting new consumers.
Historical context: Ikea, a furniture giant
Founded in 1943 by Ingvar Kamprad, Ikea quickly became a global benchmark for furniture and home accessories. Known for its sleek designs and affordable prices, the group has established itself on the international market thanks to an innovative business model and efficient logistics. Since its beginnings in Sweden, Ikea has constantly adapted its strategy to meet the changing needs of consumers, while remaining true to its original mission: to improve the everyday lives of its customers.