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Ikea U.S. sales rise 8.6% in FY 2015


Susan Dickenson -- Home Accents Today, December 9, 2015

Ikea continued its U.S. growth in fiscal year 2015 with an increase of 8.6% in total sales, led by a 23% increase in e-commerce and 4.5% increase in physical store sales.

Growth in the bed and bath departments contributed nearly half of total Ikea U.S. sales growth in the fiscal year, which ended Aug. 31, 2015. Over the past two years, Ikea home deliveries have increased 73%.

“We are pleased that Ikea U.S. continues to grow. Our investment in our co-workers’ new minimum wage structure and our positive environmental programs demonstrate Ikea U.S. is a great place to work as well as a business that positively impacts our planet,” said Lars Petersson, Ikea U.S. president. “We also see great opportunities for significant future growth as we expand the number of U.S. stores 12% by fall 2017.”

The retailer continued to invest in renewable energy in 2015 by expanding solar installations and investing in wind farms. Today, 90% of Ikea U.S. units - store, distribution centers and offices - have solar installations. The company’s goal is to produce as much renewable energy as it consumes in its operations by 2020.

Also in 2015, Ikea became the first major U.S. retailer to convert to selling only LED lamps and replacement bulbs.

The Ikea Brighter Lives for Refugees campaign, a global initiative, is currently active in more than 40 countries. From Nov. 29 through Dec. 19, 2015, for every LED lamp or light bulb sold in all Ikea stores and online, the Ikea Foundation will donate $1 to help UNHCR, the United Nations Refugee Agency.

The funds help provide light and energy from renewable sources to refugee camp families in parts of Asia, Africa and the Middle East, enabling them to live in safer conditions. The campaign also funds improved access to primary education.

Last year, Ikea customers and co-workers, through the Brighter Lives for Refugees campaign, raised $11.6 million worldwide for refugees. In just the U.S., Ikea raised over $1 million through the sale of 1,031,275 LEDARE bulbs.

In September, Ikea delivered its first 500 shelter units to refugee camps in Greece, to house Syrian refugees. This initiative is the result of the Better Shelter project, a partnership between Swedish industrial designer Johan Karlsson and the Ikea Foundation, that constructs higher-quality alternatives to canvas tents.

The shelters stand six feet tall, are constructed of steel frame and polymer panels, and include solar panels, mosquito nets, windows and a locking door. They take four to eight hours to assemble by hand and cost $1,150 each. In April, The U.N. High Commissioner for Refugees ordered 10,000 of the tents for locations that include Iraq and Kurdistan.

“This is just a tiny part of humanitarian aid, but it’s an important one when it comes to allowing displaced people to live with dignity,” .Karlsson told The Globe and Mail last month.

Souce: Home Accents Today

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