IKEA Canada Summary Report Fiscal Year 2019

Urbanization, new technology and digitalization have forever changed the way Canadians live and shop.

We began our transformation journey to create a new IKEA: more affordable, accessible and people and planet positive.

We want to meet and inspire our customers in the best way possible, wherever, whenever and however they choose to shop with us.

That’s why we are exploring new store formats, enhancing the in-store experience, improving our service offer and optimizing our distribution networks.

“We lead the IKEA business from our purpose, to create a better everyday life for the many people. And do so in a way that is affordable, sustainable and respects human rights. We are proud to lead our business this way.

This past year we took the first steps in creating the new IKEA, one that is more accessible and allows customers to interact with IKEA in new ways.”

Michael Ward
CEO and Chief Sustainability Officer
IKEA Canada

Even as the world rapidly evolves, our customers remain at the heart of what we do—and thanks to them, we have had another successful year.

We had

that’s a 6.1% increase from last year.

And

that’s a 8.2% increase from last year.

We had

that’s a 2.7% increase from last year.

That’s a 12% increase from last year.

We contributed to Canadian households, businesses and governments through our operations.

We had

10.8% more than last year.

1.7M

meatball plates

1.1M

veggie dogs

3.3M

hotdogs

500K+

sustainably sourced salmon fillets

In 2019, our co-worker base grew to over 7,300. All our results reflect the hard work and great ideas of our co-workers from coast to coast. To them, we say “Tack!” for a successful year.

With values rooted in our Swedish culture, we are an organization that believes every individual has something valuable to offer.

IKEA became an even better place to work in 2019. We are proud to provide:

A new benefit program with a focus on health and wellbeing was created in partnership with co-workers from across Canada.

A new retirement program for co-workers that includes maintaining their discount; optional health, dental and life insurance coverage; and continued access to the Employee Assistance Family Program.

Schedules to co-workers four weeks in advance, as well as providing guaranteed minimum hours to ensure co-workers have predictable working hours.

An annual performance-driven bonus program that rewards exceptional team results.

A competitive RRSP program and our IKEA Group loyalty program “Tack!” which contributed nearly $1,500.00 to every full-time co-worker's retirement program and a proportional amount for part-timers, regardless of position of salary level.

Together, our diverse team of co-workers bring to life an inspiring vision: to create a better everyday life for the many people.

AFFORDABILITY

AFFORDABILITY

We believe prices should be low enough that as many people as possible can afford them.

We rolled out more affordable and flexible services to meet the needs of time-crunched customers.

$5 Click and Collect across the country

Parcel Pricing, starting as low as $7.99 nationwide

Expanded planning services, with a new in-store PAX Wardrobe Planning Service

We design products that improve life at home for everyone.

That means creating products that are more than just beautiful, but are innovative, able to withstand daily use, sustainably produced, and affordable for everyone.
We call this philosophy, Democratic Design.

ACCESSIBILITY

ACCESSIBILITY

In a rapidly changing world, it’s more important than ever for IKEA to be accessible to our customers.

That’s why we are creating a new world of IKEA in the heart of city centres. Globally, IKEA has opened innovative city centre formats in London, New York, Shanghai and Paris.

In the time taken to read this, the urban population has increased by 10 people.

It’s expected that by 2050, nearly 70% of the world’s population will live in cities.

To meet customers whenever and however they choose to shop with us, we launched our Canadian digital strategy and have started to shape our digital experience with enhanced offers and experiences.

14

Stores

5

Pickup and Order points

2

Wind farms

4

Distribution Centres

1

Customer Support Centre

17

Collection Points

Today, Canadians shop with us in more ways than ever.

Today, Canadians shop with us in more ways than ever.

Solutions such as Task Rabbit in-home assembly mean you can build it yourself—but you don’t have to!

Task Rabbit in-home assembly has been successfully rolled out across 10 stores across the country, creating an affordable and convenient assembly experience for our customers.

Our IKEA Family loyalty program is inspired by our customers and helps create a more personalized, unique and engaging shopping experience than ever before.

2 million customers are now IKEA Family members with access to discounts, specially curated inspiration and one-of-a-kind experiences.

This year, we hosted nearly 2,000 IKEA Family members at our very first IKEA House Party—a late-night party with food, music and fun!

PEOPLE & PLANET POSITIVE

PEOPLE & PLANET POSITIVE

We want to have a positive impact on people and our planet.

We know the world is changing rapidly and strong leadership and bold action is required to tackle the sustainability challenges we face.

That’s why we are transforming our business model from linear to circular; from only using, to regenerating resources.

We are committed to being a fully circular business by 2030.

What does it mean to think in circles?

  • Designing products with re-use, repair, repurposing and recycling in mind
  • Using only renewable, recycled and recyclable materials
  • Eliminating waste
  • Introducing services which connect with customers in new ways and extend product lives

Plastic pollution is at an all-time high in our ecosystems and waterways.

We want to contribute to a world without waste.

In 2018, we committed to eliminating single-use plastics from our range and restaurants by 2020.

In May 2019, we sold our last plastic straw… 9 months ahead of our goal.

We know we must work together to tackle the world’s sustainability challenges.

So we joined government, business, sustainability experts and academia in signing the G7 Oceans Plastics Charter in Halifax.

Last year we surveyed Canadians on Climate Change.

90% of consumers say they are willing to change their behaviour to fight climate change …
… but almost half said they are unsure of how to act or worry about the added expense.

We believe every one of us can make a positive impact and a better world starts at home.

Through simple actions like using energy-saving appliances and sorting waste, we can reduce our individual carbon footprints by 50% or more!

To do our part, we’ve invested in renewable energy sources, including solar panels on more than half of our stores and two windfarms in Alberta.

Today, we generate renewable energy equivalent to 4x our total consumption.

IKEA is a humanistic, values driven company.

We are committed to providing fair treatment and equal opportunities for all. For us, embracing diversity and inclusion is more than the right thing to do— it is essential to the success of our business.

This year, we committed to extending our Refugee Employment Program across the country, reaffirming our commitment to hire 250 refugees.

We partner with 18 local agencies who will help us reach and recruit refugees seeking employment. We are proud to foster a diverse and inclusive work environment where individual differences are celebrated.

“The IKEA refugee commitment initiative is the first of its kind, empowering refugees around the world. Giving us the feeling of belonging, enabling us not just to be self-sufficient but productive member of the society… I want to say thank you IKEA for the exemplary leadership, for giving me and others like me the opportunity to pick up our dreams and creating an enabling environment to nurture them.”

Dennis Umukoro and his wife, Nkechi Dennis-Umukoro
Good Flow Co-Worker, IKEA Montreal and Customer Support Co-Worker

Everyone has a right to be treated fairly and provided with equal opportunities — regardless of their sexual orientation or gender identity.

For IKEA, celebrating Pride means committing to the creation of an inclusive environment where all our LGBT+ co-workers and customers feel welcomed, respected and appreciated for who they are.

For the second year, IKEA Canada raised the Pride flag at locations coast to coast to mark the International Day against Homophobia, Transphobia and Biphobia.

Over 600 IKEA co-workers proudly marched in Pride celebrations nationwide, celebrating the history, courage and diversity of the LGBT+ community.

To commemorate Pride 2019, IKEA launched a limited edition KVANTING bag in the colours of the rainbow flag.

100% of the proceeds benefitted our partner Pflag Canada.

We believe in balance.

A balanced workplace is better for our co-workers, customers and business.

We are proud that 51% of our managers and 52% of our co-workers are female.

“At IKEA, I have never encountered an attitude of ‘that’s a man’s job’ and have been given the opportunity to be creative and productive in what any perceive to be a man’s occupation.”

Margaret
Carpenter, IKEA Burlington

“IKEA accepts me as a person first, as well as a dad, husband and then co-worker. A day might be cut short by an unexpected early childcare pickup, or if I need to work remotely when the kids are home. With a values first approach, the importance of balance and diversity resonates throughout- IKEA gives us the space to be our best and true selves.”

Santiago
Integrated Media Manager, IKEA Canada

We are proud to be part of the Gender Equality Leadership Project, a Global Compact Network Canada venture.

Together with over 16 other leading organizations, we are creating a new vision and establishing a national blueprint for what gender equality should look like in Canada.

“IKEA globally has been engaged with the UN Global Compact for the past 15 years and is actively involved in some of UN Global Compact’s major initiatives. We applaud the proactive approach IKEA has to supporting women and reducing gender disparities, while demonstrating a strong commitment towards having a gender-balanced recruitment, retention, and promotion.“

Ayman Chowdhury
Head of Secretariat, Global Compact Network Canada

We are committed to creating a better everyday life for the people and communities that are touched by our business.

For the 23rd consecutive year, co-workers from across the country joined Tree Canada to plant trees and shrubs in communities across the country.

Since this partnership began in 1996, over 55,000 trees – including 18,700 seedlings – have been planted to help green communities.

For the second year, three IKEA stores in Quebec partnered with Opération Enfant Soleil as the official furniture and designers for Maison Enfant Soleil 2019.

We partnered with Habitat for Humanity Canada to offer a new Kitchen Donation Program in select markets, to further divert home furnishings from landfills.

When purchasing a new kitchen, customers have the option to donate their old, gently- used kitchen to help local families in need—receiving a tax receipt of the resale value in return.

INSPIRATION

INSPIRATION

We are leaders in life at home.

This year, we visited 150 Canadian homes from coast to coast to find out people’s needs, dreams and frustrations with their homes.

We also conducted extensive research on how Canadians live at home.

We learned Canadians are more stressed than ever, but get fewer than the recommended 7 hours of sleep per night
To help Canadians get ready for life, we introduced a new sleep offer, complete with planning tools to identify the perfect mattress, pillow and duvet…

…and we made dreams come true with our first-ever national sleepover and PJ Party for IKEA Family members!

Both music and light are crucial in setting the mood at home.

That’s why we collaborated with sound experts at SONOS to introduce SYMFONISK WiFi speakers, the latest launch in our home smart category.

We are passionate about the power of play and have researched its vital role in childhood development for many years.

That’s why we partnered with Women’s Shelters Canada to create and furnish custom play areas in shelters nationwide.
The announcement received support from the Honourable Maryam Monsef, Minister of International Development and Minister for Women and Gender Equality, who joined us for a panel on gender issues at our Burlington store.

Looking forward, we will continue to explore new shopping formats, digital solutions and ways to experience IKEA.

All with the goal to be there for our customers, wherever and however they choose to meet us. And always at an affordable price for the many.

Worldwide, we have already started creating a new world of IKEA in city centres including Paris and New York.

And for Canada, our city centre journey begins in Toronto.

There are beautiful possibilities ahead—and we can’t wait to share them with you.

To a glorious future, TACK!