IKEA Reports Third Consecutive Year of Sales Decline Amid Rising Costs and Weak Consumer Demand

IKEA

SWEDEN: Swedish furniture retailer IKEA recorded its third consecutive year of declining sales, as higher costs linked to the Iran war and subdued consumer spending continued to weigh on its performance. The downturn persisted despite the company's efforts to attract price-sensitive customers through significant price reductions.

IKEA reported global sales of €43.8 billion (approximately USD 49 billion) across 64 countries during the financial year ended August 31, 2026, representing a 2% decline compared with the previous year. Despite the weaker sales performance, the company continued to expand its retail footprint, adding 30 stores to its global network, with a growing focus on opening outlets in city-centre locations.

Source: IKEA