COVID-19: IKEA Canada avoids the worst

IKEA Canada has not lost too many feathers due to the COVID-19 pandemic, thanks in part to a huge jump in online commerce.

Despite closing its 14 Canadian stores for more than two months due to the lockdown, the Swedish company recorded sales of $ 2.32 billion domestically for the annual fiscal year of 2020 ending August 31. This is a decline of 8.7% compared to 2019.

Internet commerce has saved the day for the multinational.

“Online sales have grown significantly by 41.9% to a total of $ 370.74 million. In a year when home life was the focus of many Canadians, the number of people who visited or used the IKEA app jumped 52% to 178.5 million, ”the retailer said in a press release Thursday.

The company says it has adapted to closures by optimizing its distribution networks and enhancing its digital offering. For example, all of its stores in Canada have been transformed into distribution centers, which it says has increased capacity, reduced lead times and lowered its carbon footprint related to deliveries.

“As one of the most abnormal years in recent history comes to an end, I am proud to speak about the resilience of our business, how we have stayed on course to our goal and, finally, the belonging, entrepreneurship and leadership demonstrated by our people, ”said Michael Ward, CEO and Director of Sustainability, IKEA Canada.

Since it wants to be carbon neutral by 2030, the company intends to make efforts in this direction. It will modify the menus of its restaurants to serve vegetable-based meatballs in particular as of next spring. It also wants its entire home delivery fleet to be electric by 2025.

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