IKEA Sales Slip for Third Straight Year
The retailer's global sales fell 2% in the financial year ending August 31 as weak consumer demand persisted.
Updated on Nov. 6, 2026 in Retail
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IKEA reported sales of €43.8 billion ($49 billion) across 64 countries for the financial year ending August 31, down 2% from the prior year. It marks a third consecutive year of declining sales for the home furnishings retailer.
Why it matters
Weak demand from budget-conscious consumers has reduced purchasing volumes and made production capacity less efficient. Higher freight costs, driven by the war in the Gulf raising energy prices, are adding further pressure on the company.
IKEA added 30 stores to its global network while closing 7 in China, and net profit fell to €1.4 billion from €1.5 billion. The extraction does not indicate whether the store changes are expected to offset the continued sales decline.
The players
IKEA
IKEA is a Swedish multinational furniture retailer known for flat-pack furniture and its large-format stores.
Inter IKEA
Inter IKEA is the holding company that operates the IKEA franchise system and oversees its global store network.
Jankowski
Jankowski is the IKEA executive who stated the company's aim to return to sales growth.
The details
IKEA opened 15 small stores in Europe during the fiscal year, focusing on city-centre locations where shoppers can buy without driving. The company also cut prices to respond to weak demand, while Inter IKEA cut 850 jobs in May to reduce costs.
Timeline
May 2026: Inter IKEA cut 850 jobs to reduce costs.
Financial year ending August 31, 2026: IKEA sales fell 2% to €43.8 billion across 64 countries.
November 6, 2026: IKEA reported its third straight year of declining sales.
Market Landscape
IKEA's third straight year of declining sales extends a multi-year pattern that the company is now trying to reverse through smaller urban stores. Its store openings in Europe and closures in China show a shift in where it is investing as it competes for budget-conscious shoppers.
Shoppers may find more IKEA stores in city centers, since the company is opening smaller locations where people can buy without driving. Price cuts were used to address weak demand, which may affect the cost of some products.
The takeaway
A company's sales trend can shift its strategy toward smaller stores and lower prices. For shoppers, the practical effect is often more locations and sharper pricing rather than an immediate change in the products on offer.
Further reading
For broader context on how major chains are adjusting to weak demand, see the Retail section.
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Do you expect furniture prices to become more affordable over the next year?
