IKEA has been the largest furniture retailer in the world since 2008, with 50 stores in the US alone.
As a company, IKEA has stayed true to its early business model, only really making major changes in areas that help to improve sustainability and efficiency.
Keep reading for the most up-to-date statistics, facts, and figures on IKEA’s history, its current market share, and how it plans to tackle future challenges.
10 Key IKEA Statistics, Facts & Trends
- As the world’s fourth-largest retailer, IKEA is valued at $48.1 billion.
- IKEA has stores in 55 countries across the globe.
- There are 445 IKEA warehouses in the world right now, and plans to expand further are in the pipeline.
- Germany currently has the most IKEA stores, with 53 at the time of writing.
- More than 800 million people shopped in IKEA’s stores in 2020.
- Around 220,000 people work for IKEA.
- IKEA’s delivery services are supported by around 10,000 trucks globally.
- IKEA is committed to becoming climate positive by 2030, with a $712 million investment into environmental initiatives.
- More than 75% of IKEA stores have electric car charging points.
- IKEA is planning to expand its US service offerings to include shopping malls.
35 IKEA Statistics, Facts & Trends
IKEA History Facts
IKEA has come a long way from its start as a small business tucked away in the Swedish countryside.
1. IKEA’s Founder
IKEA was founded in July 1943, by 17-year-old Ingvar Kamprad. Back then, it looked very different from the warehouses we recognize today.
The business actually started out as a mail-order catalog, through which customers could browse and order household goods.
However, while IKEA initially only sold items such as pens, wallets, and picture frames, within five years Kamprad was able to expand his services and offer furniture, too.
2. The IKEA Name
The company name combines the founder’s initials with the first initial of Elmtaryd, the farm he grew up on, and Agunnaryd, which was a nearby village.
IKEA operates under the same name in all countries. However, it would appear that a lot of people mispronounce it, particularly in America. The correct pronunciation is ee-KAY-uh, although many say eye-KEY-uh instead.
3. IKEA In The US
The first US IKEA store opened in 1985, in a shopping mall just outside of Philadelphia. By this point, the well-planned warehouses and low-priced stock had become a distinctive part of the IKEA brand.
The hype around the company preceded its arrival in the states. However, even though expectations were high before the store had even landed, IKEA more than lived up to them.
4. IKEA’s First Year In The US
IKEA received an overwhelmingly positive reception in the US, and the first IKEA store quickly became immensely popular.
At one point in its opening year, the store actually ran out of merchandise and had to shut up shop until the following week. As a result of such fanaticism, the company made $50,000,000 in sales in its first 12 months.
5. Expanding IKEA
Since its inception in 1940s Sweden, IKEA has continued to expand within its home country, as well as in the US and other countries across the world.
By the end of August 2020, there were 445 IKEA stores globally. The majority are located in Germany and the United States, and there are plans to open plenty more warehouses in the coming years.
IKEA’s Popularity In The United States
Since coming to America in 1985, IKEA has made its mark. Here’s how the brand gained and retained its popularity in the US.
6. Number Of Stores
At the moment, there are 52 IKEA warehouses in the US, but they are not present in every state. As it stands, only 27 states and territories have IKEA warehouses, meaning that some residents are better catered for than others.
States that do not yet have an IKEA store include those that are more remote, such as Hawaii and Alaska, and even some larger states like South Carolina, New Mexico, and Montana.
7. California Is An IKEA Hotspot
Of all the 27 US states and territories that have an IKEA warehouse within their borders, California has by far the most.
With eight locations, California’s warehouses account for around 15% of the total number of IKEA stores in the country. And, California can also boast the largest IKEA store in the country, with Burbank’s IKEA covering 456,000 square feet.
8. The Price Of IKEA Products
One major draw customers have to IKEA is the excellent value-for-money offered in-store. In fact, many products similar to those sold in the first US store go for the same price today, despite inflation.
Amazingly, some even sell for less than their original price. As a result, you can often buy IKEA furniture for around half the price of comparable products sold by competitors.
9. IKEA’s Affordable Food
It’s not just the merchandise that is appealingly low-cost. IKEA’s in-store food courts also offer customers great value for money.
For their iconic Swedish meatballs with sides, you can expect to pay around $5.99, while their breakfast plate will cost you just $2.
And, it’s cheap for a reason. When founder Ingvar Kamprad introduced food courts to his stores in 1958, he quite rightly predicted that well-fed customers would lead to an increase in sales.
10. IKEA Family
The value for money that IKEA offers doesn’t stop at food and merchandise. The company also has a membership program called IKEA Family, which gives shoppers additional discounts and access to events and workshops.
IKEA Family is free to join for shoppers around the world, rewarding members simply for being members, rather than based on what they spend in-store.
IKEA Logistics Facts And Statistics
IKEA’s global scale necessitates an advanced logistical operation. Read on for the latest information on how the business runs.
11. IWAY Code Of Conduct
IKEA champions responsibility and ethics, dedicated to making a positive impact. So, it has a supplier code of conduct in place called IWAY, which has been devised with best practices and international standards in mind.
The IWAY sets out guidelines for environmental, social, and working conditions, which it expects all IKEA suppliers and service providers to stick to.
12. Cheap Furniture, Huge Operation
The low-cost furniture for sale in IKEA’s stores is such good value in part because of the scale of the chain’s operations.
By buying materials in massive quantities, IKEA is able to maximize the amount it gets for its money. Plus, by only dealing in flat-packed products, more can be shipped, stored, and sold at any one time.
13. IKEA’s Distribution Centers
In keeping with IKEA’s overarching company goals, distribution operations are designed to reduce fuel and energy consumption, so as to be more cost-effective and environmentally friendly.
There are at least 10 distribution centers in North America alone. Each one stores IKEA’s easy-to-transport flat-pack furniture, which is shipped by rail and sea, wherever possible.
14. Distribution Center Automations
In 2020, IKEA partnered with Verity, a world leader in autonomous indoor drone systems. Together, they devised a technological solution that would cut down on time-consuming manual processes in IKEA’s warehouses.
The result was an automated solution for warehouse inventory checks. Using drones with cameras and sophisticated algorithms, IKEA is now able to collect inventory data, without the need for manual labor.
15. New Technology At IKEA
IKEA has been upping its investments in technology elsewhere as well, for example in a new distribution center in Montreal, which is intended to service markets in both Canada and the US.
Here, 12 robots, 30 storage and retrieval machines, and a 750-meter-long floor conveyor system work together to improve efficiency and cut down on energy consumption.
16. Improved E-Commerce Capabilities
The new Montreal distribution center was designed specifically to support IKEA’s e-commerce operations.
With the most up-to-date automated systems, designed by SSI SCHAEFER, the warehouse is able to accommodate different order types and respond quickly to requests, even at peak times.
17. Where Does IKEA Deliver?
IKEA can deliver products across the US, even to states that do not have IKEA stores. So, most US residents will be able to get IKEA furniture delivered straight to their door. The only exceptions are those that live in extremely isolated areas, such as Alaska and Hawaii.
18. IKEA’s Delivery Trucks
IKEA’s delivery services are supported by around 10,000 vehicles globally. However, there is no set number of delivery trucks and vans that service the US, because IKEA doesn’t actually have its own delivery fleet.
19. IKEA’s Delivery Partners
The vehicles that carry out IKEA’s home deliveries in the US are not the company’s own. Rather, IKEA partners with delivery companies such as DHL, UPS, and FedEx, and the IWAY Code Of Conduct ensures these partners operate in line with the chain’s standards.
Because of these strong partnerships, IKEA is able to deliver a large number of furniture pieces to a customer’s door for a flat fee of $49.
IKEA also partners with a company called TaskRabbit, to offer assembly services to customers who need it.
IKEA’s Worldwide Operation Statistics
It’s not just the US that loves IKEA. These are the latest insights into IKEA’s global operations.
21. IKEA’s Most Recent Stores
IKEA has warehouses in 55 countries, with more openings all the time. One of the most recent stores to open was in Ljubljana in Slovenia, the country’s first.
And, there are plans in the pipeline to open up eight more stores in the coming years. As a result, Colombia, New Zealand, and Oman are all due to get their first IKEA stores by 2025.
21. Germany Is IKEA Central
While the US has its fair share of IKEA locations, it’s Germany that has the most. The country is home to 53 IKEA stores, with four in Berlin alone. However, it was in Munich that the country’s first warehouse opened in 1974.
22. One Of The World’s Most Valuable Retailers
Valued at around $48.1 billion, IKEA is the most valuable furniture retailer in the world.
And, as of 2020, it is also the fourth most valuable retailer in the world, after Home Depot, Alibaba, and Amazon, which takes the top spot.
23. IKEA’s Loyal Customers
IKEA attracts hundreds of millions of customers worldwide every year. In fact, in 2020 alone, more than 800 million customers shopped at an IKEA store.
During a year in which many stores had to temporarily close in response to the pandemic, this number is hugely impressive.
However, in years when operations are in full swing, IKEA has had closer to one billion customers. With IKEA expanding into more and more countries, it seems likely that the furniture retailer will surpass the one billion figure in the coming years.
24. IKEA Product Names
Almost all IKEA products are named after Swedish words. And, you will find that each item of stock has the same name, no matter what country you find it in. This helps to simplify inventory and streamline global operations.
IKEA Employee Statistics
Is IKEA as loved by employees as it is by shoppers? These facts and figures will give you an answer.
25. IKEA Employees
As the number of IKEA stores has expanded over the years, so has the number of employees that work for the company. In 2020, almost 220,000 people worked for IKEA across the world, in stores, distribution centers, offices, and more.
This number has increased dramatically since 2013 when IKEA had closer to 150,000 employees.
26. An Attractive Company To Work For
IKEA is dedicated to employee welfare. As part of its commitment to its workers, the chain continues to invest in working conditions and pay packages.
Resultantly, IKEA has been recognized across the world for its high employee satisfaction rates. In its home country, Sweden, it was voted the company people most want to work for at the 2015 Randstad Awards.
27. Diversity And Inclusion
IKEA believes in fair treatment and equal opportunities, regardless of age, gender identity, race, or any other aspect of a person’s identity. The IKEA ethos is that its staff should represent its diverse global customer base.
So, the company is committed to becoming a leader in equality and will consider all applicants for employment-based only on their qualifications and suitability for the job.
28. IKEA’s Employee Benefits
Beyond fair wages and good working conditions, IKEA also offers its employees a whole range of benefits. For starters, there is a 15% co-worker discount workers can access from the day they start.
In addition, IKEA employees also get pet insurance, paid parental leave, and exclusive meal deal offers.
What Challenges Has IKEA Faced?
There’s no doubt that IKEA is hugely successful. But, the furniture retail giant still has challenges to contend with.
29. IKEA’s E-Commerce Complaints
Even though IKEA has been investing in its e-commerce operations, online ordering and home delivery still fall short a lot of the time. This has been particularly problematic in the face of a sharp increase in online orders, as the coronavirus crisis caused physical stores to close.
With reports of poor customer service and unfulfilled orders, IKEA has come under fire for its poor e-commerce.
20. Dangerous Furniture
IKEA’s furniture is cheap and, in most cases, good quality, too. But, over the years, certain products have been found to pose a danger to customers and their young children.
MALM dressers have received perhaps the most attention, as eight children have died since 1989 as a result of them tipping over.
IKEA Emerging Market Trends And Statistics
IKEA has big plans for its future. Here’s how it plans to expand operations in the coming years.
31. Sustainability Strategy
IKEA’s commitment to sustainability is present in all it does. And, it has a strategy in place that maps out its future sustainability plans.
By 2030, IKEA wants to shift to an entirely circular business model, in which it will only use renewable or recycled materials for all of its products. The company also wants to become climate positive by the same year, actively helping to protect resources and ecosystems.
32. IKEA’S Electric Fleet
As part of its sustainability initiatives, IKEA has upped its investment in electric delivery vans, even though the company does not own its own fleet.
By 2025, IKEA wants all last-mile deliveries to be shipped in electric vehicles and is working with its delivery partners to accomplish this goal.
33. Reducing Emissions
IKEA puts its money where its mouth is when it comes to being eco-conscious. In 2020, its parent company the Ingka Group announced a $712 million investment into sustainability initiatives.
A third of this investment will go towards renewable energy, another third will be spent on warehouse sustainability efforts, and another will be invested in innovative start-ups.
34. Charging Points For IKEA Customers
The drive towards being more environmentally friendly doesn’t just happen behind the scenes. Customers who drive electric cars can also get involved, as more than 75% of IKEA stores worldwide have electric charging points as of 2018.
35. KEA’s US Malls
In 2020, IKEA announced that it was planning on opening malls in the US. With IKEA stores as a focal point, the malls (known as Ingka Centers) will also house stores that appeal to their local communities.
There are currently 50 Ingka Centers in the world right now, including one under development in San Francisco.
Conclusion
IKEA is one of the biggest and best-known retailers in the world, with 445 stores in different countries, and plans to open more in the coming years.
In spite of this constant drive to expand, the company remains committed to environmental initiatives, its focus on employee welfare, and offering affordably priced, high quality furniture to its millions of customers.
