Foot Traffic Data Is Showing Bad News For IKEA

Shopping at IKEA can feel like a trip to an amusement park: there’s a place for kids to play, a ton of things for adults to look at, and you follow a maze of products until you end up at the delicious food court you’ve been smelling since the lamp aisle. But the novelty of IKEA may be wearing off among US shoppers. According to The List’s graph, foot traffic has fallen significantly in the past year, with a steady decline well through September 2022. Surprisingly, the COVID-19 pandemic closure did not seem to affect IKEA’s recovery too significantly; there was a drastic dip in the spring of 2020 to nearly zero visitors, but the following summer, foot traffic rose to previously expected averages, with around 200,000 in-store shoppers each month. It’s not until April of 2022 that a noticeable decline emerged, with monthly visitor averages falling to less than 100,000. Shoppers hesitant to visit IKEA may be noticing higher prices and the rising inflation trends happening in the United States.

According to CNBC, IKEA raised their prices by roughly 9% in the past year as material and transport costs continue to rise. While demand was high during the pandemic when people were quarantined and reconfiguring their homes, this year consumers are less likely to purchase items for their home and more likely to spend their money on essential goods and experiences, especially as prices continue to climb.

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