Inter Ikea Group reported lower retail sales, revenue and operating profit in fiscal year 2026 (FY26), alongside price reductions, workforce cuts, and retail network expansion.
For the financial year ended 31 August 2026, total retail sales generated by the 13 Ikea franchisee groups fell to €43.8bn ($48.89bn), compared with €44.6bn in FY25.
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This figure encompasses revenue from merchandise, food, and customer services.
Inter Ikea, the owner of the Ikea brand and franchisor to retailers, posted €25.9bn in revenue, down from €26.3bn in the previous year.
The group’s operating result dropped to €1.5bn from €1.7bn, while its net result fell to €1.4bn from €1.5bn.
Inter Ikea Group CEO Jakub Jankowski said: “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.”
During the financial year, Inter Ikea and its European franchise partners allocated an estimated €1.2bn to lower customer prices, effective from 1 September 2026.
The organisation confirmed that product affordability and customer pricing remain ongoing priorities.
Product activity during the year included the rollout of 2,900 new and refreshed items and eight collections, marked by the return of the Ikea PS design line.
During the FY26, Inter Ikea removed 850 positions from its global workforce, pointing to internal complexity and organisational fragmentation as the reasons for the redundancies.
Retail network adjustments saw franchisees establish small-format branches within existing territories and exit selected underperforming sites.
Franchise operations also launched in New Zealand in December 2025, comprising the country’s first full-format location, digital shopping operations, and nationwide plan-and-order points.
In production and supply, Inter Ikea began building a recycling plant at its Ikea Industry site in Zbąszynek, Poland, which will convert manufacturing wood waste into materials for product assembly.
In addition, Ikea announced a £31.5m ($42.1m) investment in its UK supply chain last month, funding automated facilities at Peterborough and a regional distribution trial in Doncaster.
The company also unveiled plans to direct approximately €130m into Romania over the next three years to finance retail price decreases, store upgrades, and network growth.
