Ikea Korea sales growth

1 min readUpdated Jun 4, 2025Aug 28, 202011:05 PM

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Ikea’s business in South Korea has reported 32.6-per-cent sales growth over the past fiscal year despite the impact of the coronavirus outbreak.

The success of the retail business over the period has been attributed to a surge in interest in home furnishings as people remain at home to avoid the pandemic, according to Ikea Korea country retail manager Fredrik Johansson.

Customer numbers at Ikea stores also increased by 31 percent during the period to 12.3 million people, with online shoppers increasing by 14 percent to 44.7 million.

The firm has made concerted efforts to market goods at affordable prices and engage in remote sales efforts. It is also about to commence a new sustainable home-furniture marketing campaign to support climate action within Korea, along with strategies to buy back and resell used furniture to replace 20 percent of the firm’s delivery vans with electric vehicles by the end of the next fiscal year.

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What this means

Ikea's substantial growth in Korea, driven by home nesting trends and strategic affordable marketing, demonstrates resilient retail execution. This success exerts pressure on local furniture retailers and international players eyeing the market, such as Panpuri's planned Asian expansion. While Ikea's focus on sustainability and used furniture resales is commendable, its previous regional moves, like its early entry into Singapore, suggest a preference for establishing market dominance through volume rather than high-end exclusivity. The risk lies in maintaining affordable pricing while scaling these new, more complex sustainable initiatives. We will watch for the adoption rate of their electric delivery vans by the end of the next fiscal year.

Sarah Chen · Retail News Asia newsroom

Questions & Answers

What is the main reason cited for Ikea Korea's recent sales growth?

The retail business's success is attributed to a significant increase in interest for home furnishings. This surge happened as people spent more time at home due to the coronavirus pandemic.

How have customer numbers changed for Ikea Korea, both in-store and online?

During the fiscal year, customer visits to physical stores rose by 31 percent, reaching 12.3 million people. Online shoppers increased by 14 percent, totalling 44.7 million.

What sustainable initiatives is Ikea Korea planning or implementing?

The firm is launching a sustainable home-furniture marketing campaign and will buy back and resell used furniture. It also plans to replace 20 percent of its delivery vans with electric vehicles by the end of the next fiscal year.

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