IKEA Sales Fall for Third Straight Year
The Swedish furniture retailer reported a 2% sales decline and a drop in net profit for the financial year ending August 31.
Updated on Nov. 6, 2026 in Retail
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IKEA reported sales of €43.8 billion across 64 countries in the financial year ending August 31, down 2% from last year. The retailer's net profit fell to €1.4 billion from €1.5 billion a year earlier.
Why it matters
The third consecutive year of declining sales signals sustained weakness in consumer demand for furniture and home goods. Lower demand has reduced purchasing volumes and production efficiency across IKEA's supplier and manufacturing network.
IKEA added 30 stores to its global network while closing 7 in China and opening 15 smaller European stores, with Inter IKEA cutting 850 jobs in May. The source does not detail how the store changes affected overall sales figures.
The players
Jakub Jankowski
Jakub Jankowski has served as CEO of Inter IKEA since the start of the year, overseeing the company's sourcing and supply operations.
The details
IKEA has shifted toward smaller, city-centre stores where shoppers can buy products without driving. Inter IKEA, which sources furniture and supplies stores, is contending with higher freight costs as the war in the Gulf drives up energy prices.
Timeline
May: Inter IKEA cut 850 jobs as it tries to bring costs down.
August 31: IKEA's financial year ended with a 2% sales decline.
November 6, 2026: IKEA reported its third straight year of declining sales.
Market Landscape
IKEA's move toward smaller city-centre stores reflects a retail strategy aimed at shoppers who buy without driving. The three-year sales decline shows that this format shift has not yet reversed the broader weakness in furniture demand.
Shoppers may see IKEA's continued shift toward smaller city-centre stores, which allow purchases without a car trip. Rising freight costs tied to higher energy prices could affect how the company prices its products.
The takeaway
Declining sales across three years suggest that cost-cutting and format changes are IKEA's current response to weaker demand. Readers tracking furniture prices may watch how freight and energy costs flow through to store pricing.
Further reading
For related coverage, see the Retail section on consumer spending and store strategy.
Source note: This article includes information reported by Global Banking & Finance Review.
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