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IKEA

Ikea profits since 2000: 200 billion kronor

Swedish home furnishings giant Ikea has raked in more than 200 billion kronor ($29 billion) in profits since the turn of the century, according to a new report.

Ikea profits since 2000: 200 billion kronor

Since 2000, Ikea’s pre-tax profits have consistently been higher than 15 billion kronor per year, with the company’s best year of the decade coming in 2007, when it posted profits of 30 billion kronor.

The figures, which have never been made public by Ikea, come from the annual reports of Ikea’s Dutch parent company, Ingka Holding, which were reviewed by the Swedish business daily Dagens Industri (DI).

Roughly 57 billion kronor from Ikea’s profits go toward dividends and royalty payments, while Ikea has used around 100 billion of its profits to open new stores.

“We still have a very good financial situation, which means that we can continue to invest billions of kronor in both new stores and lower prices, despite difficult times,” Göran Grosskopf, board chair of Ingka Holding, told the newspaper.

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IKEA

Ikea will buy back your used furniture at up to half the price

In the run-up to what would in normal times be the festive season sales rush, Ikea has vowed to buy back used furniture from customers to resell – and pay up to 50 percent of the original price.

Ikea will buy back your used furniture at up to half the price
Got any pieces of Ikea furniture at home? You may be able to get rid of it and get money back. Photo: Fredrik Sandberg/TT

Ikea, the world's largest furniture chain, said Tuesday it would begin buying back used furniture from customers to resell – and pay up to 50 percent of the original price.

The “Buy Back Friday” scheme, timed to coincide with the “Black Friday” pre-Christmas retail frenzy, will run from November 24th and until December 3rd in 27 countries.

“Rather than buy things you don't need this Black Friday, we want to help customers give their furniture a second life instead of making an impulse buy,” said Stefan Vanoverbeke, deputy retail operations manager at Ingka Group, Ikea's parent company.

To address concerns its affordable, flat-pack products encourage overconsumption and waste, the Swedish company had previously said it would start renting and recycling furniture as part of an eco-drive.

Under its buyback scheme, the group said that “anything that can't be resold will be recycled or donated to community projects to help those most affected by the Covid-19 pandemic”.

“Some countries like Australia and Canada for example are currently testing different buyback services, but BuyBack Friday will be the first time that 27 countries do this together,” the statement added.

The Swedish giant employs over 217,000 people and has more than 50 outlets. Its annual turnover is around 40 billion euros ($46 billion).

The group did not specify how it would determine the price paid for second-hand furniture and customers will receive a voucher, not cash, for their products.  

As part of efforts to reduce waste, Ikea has already begun repairing and re-packaging products in every store that have been damaged in transit, as well as allowing customers to return products – including furniture – for resale or donation to charities.

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