Better company

In FY21 our capital expenditure amounted to EUR 3.2 billion. This included continued investment in our business transformation in our stores, distribution and customer fulfilment networks, the digital customer experience and shopping centres. Our physical expansion included opening 10 new IKEA stores (including city stores), 4 new IKEA shops and 12 new planning studios. We also opened one Customer Distribution Centre. New capabilities were added like the automated warehouse in Zagreb, which increases store capacity to fulfil e-commerce orders.  

Ingka Centres made its first acquisition in the USA and entered the Canadian and Indian market.   

At Ingka Investments, we made good progress on our investment goals during FY21. We focused on making acquisitions, and majority and minority investments in cutting-edge companies to build a network of partners that can help us improve the IKEA customer journey. We also invested EUR 450 million in projects to help create a sustainable future. 

We are investing in innovative technology solutions and businesses that can help make IKEA more efficient, sustainable and convenient for our customers.  

In 2021, we made a minority investment in Fluid Truck, an app-based rental solution, which has an increasingly electrified delivery fleet across the US. Our US retail business is working with Fluid Truck to help its transport partners rent electric trucks for last mile deliveries, in New York and Los Angeles. 

We also invetsed in DST, the largest electric vehicle (EV) operations platform in China. The capital will be used to add new capabilities to its digital platform, expand its maintenance network and enter international markets. We have been working with DST in China since 2019, which has enabled us to achieve 100% electric deliveries in Shanghai. Read more on reducing our climate footprint: travel and transport.

An investment in what3words, a new type of global address locator system, will help us to improve home deliveries. By providing reliable and highly accurate location information, more first-time deliveries are successful, reducing CO2 emissions and vehicles on the road. 

We are also investing in city centre real estate, which can help us bring IKEA closer to customers through new IKEA store formats in city locations. Recent investments include Paris and London.   

Our investments in renewable energy generation support our goal to be climate positive and contribute to the transition to a net-zero society. 

We have invested EUR 2.5 billion since 2009. Our total installed renewable energy power is more than 4.0 terawatt-hour (four terrawatt-hour), equivalent to the annual consumption of 800 IKEA stores or over 1 million European households. Since 2020, we have generated more renewable energy than the energy we consume across all of our operations. We are now prioritising renewable energy production in China, India and Russia. By expanding renewable generation in these markets, this will help us achieve our goal to consume 100% renewable electricity in all countries where we operate by 2025.  

In FY21, we strengthened our ambition for renewable investment, committing an additional EUR 4 billion by 2030, a total investment of EUR 6.5 billion. We acquired a 49% stake in eight photovoltaic renewable energy parks in Russia, which currently generate 160 megawatts, equivalent to the power requirements of all 17 of our Russian stores.

We invest in innovative companies that can help us achieve the IKEA goal to be a circular business by 2030. 

These investments focus on companies that can offer: new solutions for products at the end of their life; circular business models; and solutions that reduce the costs of circularity or can help us reduce our carbon footprint. 

For example, our significant investment in Dutch mattress recycling company RetourMatras, has enabled it to open its fourth facility. It now has the capacity to recycle all 1.5 million mattresses disposed of in the Netherlands each year, has recently started operating in Belgium and has plans for further expansion in Europe. Our investment will also help RetourMatras open an innovative new facility to turn old foam into repolyol, the main source material for new foam.  

We have also invested in Dutch plastics recycler Rhymoplast Morssinkhof, that together with IKEA of Sweden, developed the first IKEA product made from post-consumer recycled plastics, HALLBAR, which is now on the market in Europe.