IKEA Announces €1.2Bn Investment To Grow In France

At Choose France Summit organized on May 15th by the French presidency, IKEA announces an investment of around €1.2Bn[1] in France for the period 2023-2026. The company will accelerate its omnichannel transformation and accessibility in France, while contributing to sustainability and energy transition. This is the next step for IKEA to move forward on its strong direction – to create a better IKEA that is more accessible, sustainable and affordable for the many people and generations to come.  

France is an important market for IKEA and Ingka Group[2] and this investment marks the next step of the development in the country. Building on the IKEA vision to create a better everyday life for the many people by opening new locations, strengthening the fulfilment network as well as reducing its climate footprint. Paris is a prioritized market. Ingka Centres acquired Italie 2 shopping centre – more than 85 000m² of prime retail and office space will be united into a modern urban meeting place. Moreover, IKEA invests in existing stores. For example, IKEA Décoration Paris Rivoli will evolve to better answer the needs of Parisians. IKEA also deploys new digital experiences for a seamless customer journey.

"France is an important market for us where we constantly test and try new ways to become even more accessible and sustainable. Life at home has never been more important and with this investment we want to meet the dreams and need of the many Français – making our existing stores better than ever, as well as investing in creating a unique omni-channel IKEA that truly contributes to a sustainable movement. We are optimistic about our opportunities and the future in France." – Jesper Brodin, CEO Ingka Group

In addition, IKEA France will strengthen its fulfilment network to become more accessible whenever, wherever and however customers would like. The company aims to open additional distribution centers, in Toulouse by 2024 and in Limay by 2026. Limay is directly connected to the river Seine and will support in the continues journey of river deliveries for Parisian customers, already operational from Gennevilliers warehouse since December 2022.

"IKEA has been in France for 40 years. We are highly committed to grow our business and continue to bring our unique home furnishing offer to the many people in France. At the same time, IKEA continues the journey of being even more accessible, affordable and sustainable. I am very proud of our 12.000 committed co-workers, who always support our customers to create a better everyday life at home." – Johan Laurell, Country Retail Manager and CSO of IKEA France

IKEA remains committed to the Paris Agreement limiting global warming to 1.5°C by reducing its climate footprint in line with sciences.  Since baseline year FY16 the company has globally achieved a reduction of 13.6% while still growing the businesses with 24.2%. In France, the company already produces more renewable energy than it consumes[3], and will accelerate its investments in a solar park in Langeron, with an estimated annual production of 23 GWh per year, equivalent to the annual consumption of over 6000 households. The project is scheduled to become operational in 2024.

As the company takes the next step in circularity, Ingka Investments is supporting RetourMatras, a mattress recycling company, in its intention to grow mattress recycling capacity in France by 500,000 mattresses and recover seven million kg of secondary raw materials that can be re-used. 

[1] €906M€ of new investment for 2023-2026 and €377M still to be deployed by 2025 from the previous €650M announcement for 2022-2025

[2] Ingka Group consists of three business areas – IKEA Retail, Ingka Centres and Ingka Investments

[3] IKEA in France exceeds its production of renewable energy equivalent to the energy used across its operations by 152% in FY22, thanks to 43 windmills and more than 57 000 solar panels on 23 units

Source : IKEA

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