IKEA Canada 2017 Summary Report

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IKEA Canada 2017 Summary Report
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IKEA Canada 2017
Summary Report

© Inter IKEA Systems B.V. 2017
IKEA Canada 2017 Summary Report
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                             Hej,

                             I’m delighted to welcome you to IKEA Canada’s 2017 Summary             This year also marked a personal milestone for me at IKEA.
                             Report. In it, we share with you our accomplishments from this past    In February, I was honoured to join IKEA Canada as President.
                             year. We continue to strive each and every day to create a better      Since arriving in Canada, I have travelled the country visiting our
                             everyday life for the many people, for both our customers and our      stores to meet our incredible co-workers. The passion IKEA Canada
                             co-workers, and also be a leader in the Canadian retail landscape.     co-workers have for home furnishings and meeting our customers
                             This past year we made considerable progress toward these goals.       in a caring and honest way continues to impress me.

                             This year, Canadians saw continued high housing costs and              That’s why I’m committed to ensuring that IKEA continues to be
                             mounting debt, resulting in record low discretionary income.           a Great Place to Work. Some of the ways we worked towards this
                             As a result, we concentrated on what makes IKEA unique –               in 2017 include launching a new RRSP program for all co-workers,
                             understanding how Canadians live, and offering relevant products       committing to providing schedules four weeks in advance and
                             and inspiring home furnishing solutions at the lowest                  offering guaranteed hours for all co-workers.
                             possible prices.
                                                                                                    As we look forward to 2018, we see the “Beautiful Possibilities” that
                             Fiscal Year 2017 was a good year for IKEA Canada as we continued       lie ahead of us. We will continue to lead by example with our low
                             to see positive sales growth through all channels. Our overall sales   prices and democratic design that will allow Canadians to create the
                             grew to $2.17 billion, which represents an increase of 5.9 per cent    beautiful kind of home they want. To a glorious future!
                             for total sales.
                                                                                                    Take care,
                             In October, we celebrated a major milestone for IKEA – 40 years
                             in Canada! To commemorate the occasion, IKEA hosted the Then
                             & Now Exhibit in Toronto. The exhibit invited visitors to journey
                             through the decades to see how IKEA has helped shape life in
                             Canada. It’s incredible that IKEA Canada started in Richmond, BC
                             with 65 co-workers. Today, we’ve grown to more than                    Marsha Smith

    MARSHA SMITH             6,300 co-workers!
                                                                                                    President

    PRESIDENT, IKEA CANADA   We also made progress in our coast to coast expansion strategy:        IKEA Canada

                             •      We opened our 13th store in Halifax in September.

                             •      We will open a new store in Quebec City in 2018 and London
                                    in 2019.

                             •      We opened 12 Collection Points, owned and operated by
                                    third-party providers, to make shopping at IKEA easier in all
                                    10 provinces.

                             •      We broke ground on a new customer distribution centre in
                                    Beauharnois, QC and announced a third centre in Richmond,
                                    BC. Both will ensure our products are available when and
                                    where our customers want to shop.
IKEA Canada 2017 Summary Report
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    TABLE OF
    CONTENTS
    06   Fiscal Year 2017 Milestones

    08   Financial and Business Update

    10   Celebrating 40 Years in Canada

    12   Life at Home

    14   Democratic Design

    16   Customer in the Centre

    18   Sustainability

    24   Becoming More Accessible
         to the Many Canadians

    26   A Great Place to Work

    30   Safer Life at Home

    32   A Look Ahead to 2018

    34   IKEA in Canada

    36   Meet our Management Team

    38   About IKEA Canada
IKEA Canada 2017 Summary Report
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    FISCAL YEAR
    2017 MILESTONES
IKEA Canada 2017 Summary Report
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                                                                        FISCAL YEAR 2017 ECONOMIC CONTRIBUTIONS
                                                                        Ernst & Young was commissioned by IKEA Canada (“IKEA”) to quantify
                                                                        the company’s total economic and tax contributions during Fiscal Year
                                                                        2017. This study considered IKEA’s $2.2b of retail sales, management,
                                                                        and service and distribution centres. Through its operations and

    FISCAL YEAR
                                                                        capital investments, IKEA delivers value to households, businesses and
                                                                        governments across Canada in the form of jobs, taxes, and purchases
                                                                        from domestic suppliers.

    2017 BUSINESS
    PERFORMANCE
    IKEA Canada continued to experience positive sales growth in
    Fiscal Year 2017*, further reinforcing our position as the leader
    in life at home in Canada. Total sales reached $2.17 billion, an
    increase of 5.9 per cent from the previous year.

    In 2017, IKEA Canada continued its journey to become the
    world’s leading multichannel home furnishing retailer, making
    the shopping experience more accessible for the many
    Canadians. In response, IKEA Canada’s online visitation jumped
    to 95 million, an increase of 8.7 per cent from 2016. Meanwhile,
    IKEA stores across the country opened their doors to more than
    28 million visitors in 2017.

    With the influx in online visitors, IKEA Canada’s eCommerce
    sales also continued to grow. In 2017, online sales reached
    $184.6 million, a 26.7 per cent uplift over last year. Food sales
    also complemented store growth, with sales totalling $90.3
    million, an increase of 5.8 per cent.

    For the fourth year in a row, IKEA Canada successfully
    maintained its position as market leader in the home furnishing
    category, seeing an increase in market share of 0.2 per cent to
    9.6 per cent.

    *September 1, 2016 – August 31, 2017
IKEA Canada 2017 Summary Report
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     40TH
     ANNIVERSARY
     In Fiscal Year 2017, IKEA Canada celebrated 40 years of creating
     a better everyday life for the many Canadians.

     Since opening our first store in Richmond in 1976 with 65 co-workers,
     we have grown to 13 stores in British Columbia, Alberta, Manitoba,
     Ontario, Quebec and Nova Scotia, six Pick-up and Order Points, 13
     Collection Points, an eCommerce channel, two distribution centres and
     more than 6,300 co-workers.

     Fiscal Year 2017 was the perfect time to reflect on the past 40 years,
     while looking forward to our lofty ambitions for the next 40.

     IKEA THEN & NOW EXHIBIT
     In October 2016, IKEA hosted the Then & Now exhibit at the Design
     Exchange, Canada’s Design Museum.

     We invited visitors to journey through the decades to see how IKEA
     has helped shape life at home in Canada. From our humble roots in
     Älmhult, Sweden through to the present day and beyond, IKEA Then
     & Now showed the story of IKEA in Canada – and featured many
     products from our customers’ homes right here in Canada!

     The exhibit also featured an iconic IKEA ball pit – for adults and
     children alike – and visitors had an opportunity to see themselves on
     the cover of the 2017 IKEA Catalogue. IKEA Then & Now also provided
     visitors with access to IKEA global Head of Design, Marcus Engman,
     and Senior Product Designer Henrik Preutz. Both shared more about
     how IKEA works with Democratic Design, our unique take on design
     that focuses on not just making things, but making things better.

     CO-WORKER CELEBRATIONS
     We know that our success is largely due to the dedication and skills
     of our more than 6,300 co-workers across the country. IKEA saw a
     unique opportunity to engage our co-workers by encouraging them
     to participate in several 40th anniversary celebrations. These included
     a design contest, an opportunity to win a trip to Toronto to visit the
     IKEA Then & Now exhibit and a chance to star in a collaborative and
     energetic music video set to a bilingual mix of songs.
IKEA Canada 2017 Summary Report
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     LIFE AT HOME
     IKEA wants to inspire and reach as many people as possible, making us the
     leaders in “Life at Home.” That’s why we regularly explore Canadians’ needs,
     dreams, and frustrations with their spaces to truly understand what will make
     life at home better for them.

     Insights gathered through research, customer surveys and IKEA co-worker
     visits to more than 400 homes across Canada in 2017 told us more about
     people’s needs and dreams. These insights revealed two key trends that
     shape how Canadians live their lives at home: urbanization and technology.
     These trends have transformed our lives and our homes, creating a shared
     space where various activities take place rather than distinct rooms that
     separate people.

     These insights enable each of our stores across Canada to reflect local living
     situations, presenting realistic rooms that inspire customers to create easy,
     simple and affordable updates to their homes.
IKEA Canada 2017 Summary Report
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                                                                                                                     In Fiscal Year 2017, we launched several new products and
                                                                                                                     improved classic design.

                                                                                                                     POÄNG
                                                                                                                     In September 2016, the POÄNG armchair turned 40. While
                                                                                                                     Scandinavian in design, it was actually created by Japanese
                                                                                                                     designer Noburu Nakamura. This iconic armchair has offered
                                                                                                                     40 years of style and comfort. By being as efficient as possible
                                                                                                                     and keeping waste to a minimum, we also managed to lower
                                                                                                                     the price over the years. Today, POÄNG is our bestselling
                                                                                                                     armchair, with over 30 million sold worldwide and one million
                                                                                                                     sold every year in Canada.

                                                                                                                     SMART LIGHTING
                                                                                                                     In April 2017, we launched Smart Lighting, where the lighting
                                                                                                                     products are plug-and-play, meaning there’s no need for new
                                                                                                                     wiring or hiring an electrician. TRÅDFRI products mean you
                                                                                                                     can immediately change the light using the remote control.
                                                                                                                     This is an example of how something simple like a lightbulb
                                                                                                                     can do so much more than allow people to have better light.

     DEMOCRATIC DESIGN                                                                                               KUNGSBACKA
                                                                                                                     KUNGSBACKA is a new kitchen door style released in Fiscal
     DESIGN FOR EVERYONE: BETTER PRODUCTS, BETTER HOMES                                                              Year 2017 and is the result of a truly sustainable design that
                                                                                                                     helps save the earth’s resources. The door front is modern
     At IKEA, we believe that quality and design should be affordable to the many, and our products should           and sleek and is made of recycled wood wrapped in a plastic
     improve our customers’ lives at home. We believe that good design means making products that are more           film. The film is made of recycled plastic bottles, which reduces
     than just beautiful, but also innovative in how they work, able to withstand daily use, sustainably produced    waste and gives the plastic new use.
     and affordable for everyone.

     This design philosophy is known as Democratic Design and consists of five key design pillars that are at
     the heart of every IKEA product. A well-designed product should combine form, function, quality, and
     sustainability, all at a low price. Our product developers must find the right balance of these five elements
     throughout every step of the design process.
IKEA Canada 2017 Summary Report
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     CUSTOMER                                                         CUSTOMER SUPPORT CENTRE FACTS

     IN THE CENTRE
                                                                      AND FIGURES
                                                                             1.5 million interactions with customers
     As life changes and evolves, it becomes increasingly
     important for IKEA to truly understand our customers.
     Our vision is to create a better everyday life for the many             More than 47,500 interactions on social media
     people, and we recognize that our customers are at the
     heart of everything we do.
                                                                             75 per cent of calls answered in 60 seconds
     We are incredibly proud of our world-class Customer
     Support Centre, based in Montreal, and the key role these
     co-workers play in helping our customers across the
                                                                             11,000 interactions via chat
     country. Last year alone, our Customer Support Centre
     had 1.5 million connections with customers, and we are
     pleased that 75 per cent of all calls were answered within
     60 seconds.
                                                                    WHAT OUR CUSTOMERS ARE SAYING
     EXCEPTIONAL CUSTOMER EXPERIENCE
     ACROSS ALL TOUCHPOINTS
                                                                    “The service I have received from not only one, but
     Canadians are more time-crunched than ever, which is why        two of your staff has left me in awe. I used the chat
     we continue to evolve our shopping experience. In such a        feature and connected with George. He was friendly,
     large country, it is important to offer a variety of options
     that can be used to make shopping at IKEA even easier.
                                                                     helpful, and didn’t provide me with an explanation
     We want our customers to have a positive experience every       to just ‘go away’. He had his co-worker Natasha
     time, no matter which shopping option they choose.              contact me to finalize and explain the next steps for
                                                                     ordering. She touched base frequently to provide
     The IKEA store will always be central to the shopping
                                                                     me with updates… and went out of her way to
     experience to ensure that customers can touch and feel our
     products. As we look to make IKEA more accessible and           ensure that I was a satisfied customer.”
     convenient, we want to offer new and inspiring ways for        - Sandra
     customers to shop with us. New options – Click & Collect,
     Pick-up and Order Points, the rollout of Collection Points,
     continuous improvements in our eCommerce and                   “I would just like to say thank you for the excellent
     customer-focused distribution channels – make shopping          customer service and seamless process of ordering
     online affordable for many more Canadians.
                                                                     products from your online store. All of the parts
     CUSTOMER-FACING CO-WORKERS                                      included in each box were successfully accounted
                                                                     for, and the delivery of the products ordered
     In 2017, IKEA Canada continued to invest in developing our      was excellent.”
     co-workers and improving our services to meet and exceed
     customer expectations. We know success relies on helpful,      - Jacquie
     friendly and knowledgeable co-workers who have the tools
     and opportunities to take care of the customer.
                                                                    “I wish to thank the IKEA staff responsible for
     We increased the number of co-workers on the sales floor
                                                                     looking after my concern. Customer service of this
     to make sure customers have an experience that is friendly,
     fast, easy and above all, seamless. In the coming year,         nature is greatly appreciated and does not
     we’ll continue to support this same customer experience         go unnoticed.”
     throughout our multichannel environment.
                                                                    - Paul
IKEA Canada 2017 Summary Report
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SUSTAINABILITY                                                     ALL-IN FOR A CLEAN ENERGY FUTURE
                                                                   IKEA Canada generates renewable energy equivalent to
                                                                                                                                   SUSTAINABLE LIVING FOR THE MANY PEOPLE
                                                                                                                                   IKEA Canada wants our product range to inspire a more
                                                                                                                                                                                                    WORKING TOWARDS A CIRCULAR ECONOMY
                                                                                                                                                                                                    IKEA recognizes the need to accelerate the transition to a
WE’RE BUILDING A SUSTAINABLE FUTURE                                approximately four times the energy we consume across           sustainable life at home, and customers are on board.            circular economy, which maximizes the value and usefulness
                                                                   the country. The IKEA Group has committed to energy             We continue to experience strong sales of products that enable   of material in our society. The growth of today’s linear
IKEA is committed to taking a leading role in building a           independence by 2020: to produce more renewable energy          water savings, energy savings, waste reduction and sorting,      economy requires ever-greater use of virgin raw materials
sustainable future. From the beginning, we have focused on         than the total energy consumed in all of our operations         and healthy living. In 2017, sales of these products increased   and produces excessive waste. We see great opportunity in
resource efficiency. This keeps our costs low and passes on        worldwide. IKEA Canada accomplished this milestone in 2015.     by 7 per cent.                                                   the transition to a circular economy – to deepen relationships
low prices to our customers, creating a better everyday life for                                                                                                                                    with our customers, add value throughout the useful life of our
the many people. In more recent years, we have committed to        In January 2017, IKEA Canada announced the purchase of a        ENABLING LOW CARBON MOBILITY                                     products, and offer solutions for products when our customers
transforming our business to have a positive impact on people      second wind farm in southern Alberta. The 88MW Wintering                                                                         are finished with them.
and the natural world.                                             Hills project, located about 130 km east of Calgary, has 55     In March 2017, IKEA switched on 10 new Level 3 DC fast
                                                                   turbines that together generate enough equivalent electricity   chargers for electric vehicles – two at each store in Ontario.   We offer a free take-back and recycling service for household
                                                                   to power 54 IKEA stores or 26,000 typical Canadian homes. In    These charge points provide free rapid charging along            batteries and lightbulbs, as well as a mattress removal and
                                                                   2013, IKEA Canada purchased the 20-turbine 46MW Pincher         400-series highways to support virtually carbon-free intercity   recycling service for a small fee with a new mattress delivery.
                                                                   Creek wind farm, located about 215 km south of Calgary.         travel. Funding for these 10 units came from the Ontario         In many markets, we have held collection events for various
                                                                                                                                   Ministry of Transportation as part of the Electric Vehicle       products, with a promotional offer for customers who brought
                                                                   Over the summer and fall of 2017, we began construction on      Chargers Ontario grant program. These chargers are in            in an item they were finished using or that had reached its
                                                                   our Burlington and Ottawa stores to outfit them with rooftop    addition to the two Level 2 electric vehicle chargers at each    complete lifecycle.
                                                                   solar panel installations, joining the Etobicoke, Vaughan and   IKEA location across Canada.
                                                                   North York stores, which have had rooftop solar installations                                                                    IKEA Canada is also a founding partner and supporter of the
                                                                   since 2010.                                                                                                                      Circular Economy Lab, a collaborative initiative to advance
                                                                                                                                                                                                    Canada’s transition to a circular economy.
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CO-CREATING WITH SOCIAL ENTERPRISES                               STANDING WITH COMMUNITIES AND
                                                                  CO-WORKERS IN NEED
IKEA sees business as a force for positive change, and social
enterprises use the power of business to address challenges       When flooding isolated and damaged parts of Quebec and the
in our society.                                                   Ottawa Valley in May 2017, IKEA Canada supported our
                                                                  co-workers, their families and the local communities.
With this philosophy, IKEA Canada is proud to have partnered      Affected co-workers received three paid days to account for
with Setsuné Indigenous Fashion Incubator on the                  being unable to leave their homes, the need to repair their
co-creation of a limited-edition collection of textile products   homes, or to support immediate family members who may
made from salvaged IKEA textile waste. The collection was         have been affected. IKEA also contributed $10,000 to the
called ÅTERSTÄLLA, which in Swedish means to restore, heal        Canadian Red Cross on behalf of our Ottawa, Montreal and
or redecorate. The material, which was destined to become         Boucherville stores to support immediate relief efforts for
waste, was instead “upcycled” into 2,000 handmade products        those in greatest need.
for preparing and storing food around a traditional Indigenous
kitchen. Working with salvaged IKEA textiles also represented     As wildfires ravaged the interior of British Columbia in summer
the traditional philosophy of “let nothing go to waste.”          2017, IKEA Canada again offered support to our affected
The collection launched at IKEA Etobicoke in June 2017 and        co-workers. We donated $10,000 to the Canadian Red Cross
was available while supplies lasted.                              on behalf of our two BC stores. IKEA will also support the
                                                                  reforestation process later through our ongoing partnership
SUPPORTING CHILDHOOD DEVELOPMENT                                  with Tree Canada. In 21 years, we’ve planted over 30,000 trees
                                                                  and shrubs together across the country.
IKEA Canada supports childhood development in each of
the markets in which we operate. With one in five children
in Canada at risk of going to school on an empty stomach,
IKEA Canada partnered with the Breakfast Club of Canada
in November 2016. We committed to provide one school
breakfast for each breakfast sold at an IKEA restaurant
throughout that month.

IKEA co-workers also volunteered their time to pack breakfast
bags to be delivered to schools close to each IKEA Canada
unit. In addition, IKEA contributed cooking and eating products
to support breakfast programs across the country. In total,
IKEA Canada has contributed approximately $120,000 to
Breakfast Club of Canada in food, home furnishings and
financial contribution over the past year. We have committed
to continue this partnership for at least two more years.
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 RENEWABLE ENERGY
                                                                             EXPANSION                                                                  FLAT PACK
  Through our two wind farms
  in Alberta and rooftop solar                                         In 2017, we built IKEA Halifax,                                              IKEA is known for our
   installations, IKEA Canada                                        designed as the most sustainable                                            iconic “flat pack” method of
  produces renewable energy                                             IKEA store in Canada and a                                              packaging, which dramatically
 equivalent to more than four                                        flagship for future developments.                                             decreases the number of
times our energy consumption                                                                                                                     shipments required and the
       across the country.                                                                                                                          associated emissions.

                                             COTTON                                                             SOCIAL IMPACT                                                          IWITNESS GLOBAL
                                                                                                             IKEA is proud of our 21 year
                                                                                                                                                                                      CITIZENS PROGRAM
                                      All cotton in IKEA products
                                           comes from more                                                  partnership with Tree Canada,                                          Each year, IKEA sends co-workers
                                     sustainable sources (through                                          greening communities across the                                             to visit programs the IKEA
                                      the Better Cotton Initiative                                        country. We also support childhood                                        Foundation funds through Good
                                        or equivalent standard).                                         development through our partnership                                        Cause Campaigns. Co-workers
                                                                                                            with Breakfast Club of Canada,                                           have visited UNICEF, Save the
                                                                                                           making sure as many children as                                         Children and UNHCR programs in
                                                                                                           possible have access to a healthy                                          Malawi, Kosovo, Jordan, and
                                                                                                                     morning meal.                                                             South Africa.

  ELECTRIC MOBILITY                                                            SEAFOOD                                                           WASTE DIVERSIONS
 All IKEA Canada stores feature                                           All seafood sold at IKEA                                              In stores, sorting and recycling
electric vehicle charging stations                                    restaurants and Swedish Food                                             programs at each location divert
to support the adoption of near-                                      Markets is third-party certified                                           85 per cent of waste material
 zero-emissions transportation.                                        as responsibly sourced by the                                                      from landfill.
                                                                      Marine Stewardship Council and
                                                                     Aquaculture Stewardship Council.
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BECOMING MORE                                                                                                                     COLLECTION POINTS                                                  IMPROVING DISTRIBUTION TO BETTER
                                                               The journey began in Halifax when we announced the first
                                                               store in Atlantic Canada, which opened in late September 2017.                                                                        REACH OUR CUSTOMERS

ACCESSIBLE
                                                               We are proud that IKEA Halifax was constructed to operate as       IKEA Canada also made great strides in making the brand
                                                               the most sustainable IKEA store in Canada and will be the first    more accessible to the many Canadians in all 10 provinces          IKEA Canada is also making improvements to our logistics
                                                               to be LEED certified. We began construction on a new store         in 2017, with the launch of new Collection Point locations.        and distribution networks to better reach our customers.

TO THE MANY                                                    in Quebec City in June 2016 and we announced a store for
                                                               London, Ontario in October 2017. With one new store already
                                                                                                                                  Successfully introduced in 2016, Collection Points allow
                                                                                                                                  customers to buy products online and pick them up closer
                                                                                                                                                                                                     We broke ground in 2017 on a new customer distribution
                                                                                                                                                                                                     centre in Beauharnois, QC, which will replace the existing

CANADIANS
                                                               open and two coming soon, our plans to double the number           to home for substantially less than the average cost of home       Brossard Distribution Centre. We plan to open the Beauharnois
                                                               of stores in Canada are well on their way.                         delivery in the market. Owned and operated by third-party          Customer Distribution Centre in late 2019. To improve the
                                                                                                                                  service providers, 12 new Collection Points were introduced in     shopping experience for customers in western Canada, IKEA
In Fiscal Year 2017, IKEA Canada continued our journey to      PICK-UP AND ORDER POINTS                                           2017, bringing the total to 13 locations.                          will also open a new customer distribution centre in Richmond,
become the world’s leading multichannel home furnishing                                                                                                                                              BC in spring 2018. Both the Beauharnois and Richmond
retailer. For IKEA Canada, this means creating a more          Since December 2015, IKEA Canada has launched six Pick-up          CLICK & COLLECT                                                    Customer Distribution Centres will further enable IKEA to have
convenient, enjoyable and affordable shopping experience       and Order Point locations in southern Ontario and Quebec City.                                                                        our products in the right location, closer to our customers.
for the many Canadians, no matter how or when they choose      At one-tenth the size of a traditional IKEA store, the Pick-up     Customers welcomed the rollout of Click & Collect service at all
to interact with IKEA.                                         and Order Points give customers the option to pick up their        IKEA Canada stores in 2017. Click & Collect is tailored to meet
                                                               online or store purchases closer to home. At these locations,      the needs of time-crunched IKEA customers who want to take
                                                               customers can also access support services and computer            advantage of the convenience of picking up their purchases
CANADIAN EXPANSION JOURNEY CONTINUES
                                                               stations to view the entire product range, with the help of IKEA   without shopping in store.
In 2015, IKEA Canada announced our ambition to double in       co-workers. Customers can also browse a small range of the
size by 2025 and expand from coast to coast. To achieve this   most popular IKEA products, which are available for immediate
goal, IKEA Canada will open in new locations with existing     takeaway. The success of the Pick-up and Order Points shows
formats and also introduce some new formats.                   that IKEA customers are excited to shop the brand in more
                                                               accessible ways.
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                                                                                           TACK!                                      A MODERN AND HUMANISTIC WORKPLACE

                                                                                           Tack, or “thank                            Staying true to our strong culture and values, IKEA Canada wants to be seen as an
                                                                                                                                      honest and trustworthy company. We want our workplace to be attractive, modern,
                                                                                           you” in Swedish,                           humanistic and inclusive.

                                                                                           is the IKEA                                With the ambition to be one of Canada’s top employers, we are focused on better
                                                                                           annual employee                            recognizing the realities of our valuable co-workers today. This means offering
                                                                                                                                      flexibility to our co-workers to meet the demands of life outside IKEA, while
                                                                                           recognition                                understanding the needs of the business. In Fiscal Year 2017, we successfully
                                                                                                                                      implemented four-week scheduling so our co-workers can better plan their lives and
                                                                                           initiative. This year,                     incorporate a better work-life balance.
                                                                                           IKEA Canada said                           To further support co-workers and position ourselves as a Great Place to Work, we will
                                                                                           Tack by contributing                       offer every co-worker a minimum of 12 hours or more of work each week before the
                                                                                           an extra $1,235 into                       end of Fiscal Year 2018. We continue to add more full-time opportunities in many of
                                                                                                                                      our units so that co-workers see IKEA as a long-term career. These positive changes
                                                                                           every full-time                            – along with the implementation of a more competitive Group RRSP program for
                                                                                                                                      co-workers and Total Rewards offering – will help us attract and retain future talent to
                                                                                           co-worker’s RRSP.                          support our growth.

A GREAT
PLACE TO                                    RECRUITMENT AND
                                            TALENT APPROACH
                                                                                       We truly believe every IKEA co-worker
                                                                                       is considered a talent and we work to

WORK
                                                                                       provide exceptional learning and career
                                            Our values-based recruitment continues     opportunities. One of the ways we do this
                                            to attract high-potential co-workers and   is through our Talent Week. This is a global
                                            leaders to our organization. Last year     week-long event that occurs simultaneously
IKEA is a place where down-to-earth,        alone saw 71,221 applications for roles    in all IKEA units and countries around the
hard-working individuals can thrive and     at IKEA.                                   world. Co-workers have the opportunity to
be successful. We create an environment                                                connect with each other and explore all the
where co-workers can stretch and            As we look to double the number of         different ways to grow with IKEA.
develop but where we can also take care     co-workers in the coming years, it is      In 2017, over 45,000 co-workers
of them. It is our ambition to be seen      imperative that we also foster talent      participated globally. All Canadian
as a unique, meaningful and trusted         within IKEA. Last year saw the rollout     co-workers were invited to several events
company and employer.                       of programs that provide exceptional       and activities designed to help them
                                            learning and development opportunities,    discover the many ways they can grow and
IKEA co-workers are our best                including a high-potential program and a   develop their careers at IKEA.
ambassadors and the key to developing       deputy store manager program. Programs
our business and delivering results. They   such as these are vital to support our     In Fiscal Year 2017, 2,253 new co-workers
are instrumental in how the IKEA brand      coast to coast expansion plans.            joined IKEA Canada and we are now
is seen across the country in the overall                                              a dedicated team of more than 6,300
customer experience, sales, after-sales                                                co-workers nationwide across retail,
support and the overall store experience.                                              properties and distribution services.
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                                                                                  “I’ve had five different job titles,
                                                                                   earned a Bachelor in Design,
                                                                                   started my professional career,
                                                                                   gained an amazing mentor,

     BY THE NUMBERS:                                                               took part on countless projects
                                                                                   and initiatives, planted many
                                                                                   trees, received co-worker of
                                                                                   the month, was one of Santa’s
             We have 6,300 active co-workers                                       elves, drove through the Rockies,
                                                                                   had a picnic in Peggy’s Cove
                                                                                   and watched a completely new
             53 per cent of IKEA managers are female                               store come to life. All of this
                                                                                   happened in 7 years, thanks
                                                                                   to IKEA”

             Our oldest co-worker is 79 years old
                                                                                  - Chanel

                                                                                   Graphics co-worker,
                                                                                   IKEA Vaughan
             Our longest-serving co-worker has worked 37 years

             IKEA received 71,221 applications

             We hired 2,253 new co-workers

                                                                                  “Each morning I am thankful to
                                                                                   wake up and face the workday
     CANADA’S GREENEST EMPLOYER                                                    smiling. I know that I am heading
     For the ninth consecutive year, IKEA Canada has been named one of             to a place of inspiration, forward
     Canada’s Greenest Employers by Mediacorp Canada Inc. We are committed         thinking and positive change. A
     to having a positive effect on people and the planet and our more than        place where no idea is wrong and
     6,300 co-workers make sustainability a part of their everyday work.           the possibilities for learning and
     As a company, we have made strong commitments to be a leader for a
                                                                                   growth are endless. Working at
     sustainable future. We also want our co-workers to be proud to work for a
     company that is committed to tackling social and environmental challenges.    IKEA means that I get to be me
                                                                                   while teaming alongside a group
     FORBES BEST EMPLOYER                                                          of supportive, passionate and
                                                                                   unique individuals.”
     In 2017, we were delighted to be named one of the Best Employers in
     Canada by Forbes Magazine.
                                                                                  - Karina

                                                                                   Sales Team Leader,
                                                                                   IKEA Etobicoke
30                                                                                                                                31

                                                                      CHILDREN’S IKEA
                                                                      IKEA puts a special focus on children’s products, which must
                                                                      meet the highest standards of quality and safety worldwide.

                                                                      Co-workers spend time each year learning about children’s
                                                                      developmental needs, safety and health. Our Child Safety First
                                                                      training programs teach them about IKEA products that are
                                                                      designed for children to learn and discover.

                                                                      IKEA thoroughly tests each part and designs products through
                                                                      the eyes of a child. Then, if products are used in a different way
                                                                      than intended, they are still safe and secure.

                                                                      We test IKEA children’s products to strict national and
                                                                      international safety standards at our own third-party-accredited
                                                                      test laboratory in Älmhult, Sweden. We also conduct safety
                                                                      checks of our products at independent, accredited test
                                                                      laboratories and institutes around the world.

                                                                      From continued product innovation to the high standards we
                                                                      set for ourselves, we continue to look for ways to set a leading
                                                                      example within the home furnishings industry.

     SAFER LIFE AT HOME
     We all want our homes to be a safe place. When we work
     together, we can reduce the risk of accidents.

     Safety is a top priority at IKEA and we have taken a leading
     role in raising awareness of safety hazards in Canadian homes.
     These are some of the bold moves IKEA Canada has taken:

     •   We were the first Canadian retailer to only sell
         cordless blinds.

     •   We are raising awareness about the hazards of furniture
         tip-over in Canadian homes.

     •   We now only carry chests of drawers that comply with the
         voluntary ASTM standards for stability.

     •   We partner with Canada’s leading national charitable
         organization, Parachute, who is dedicated to preventing

                                                                                                         Secure it!
         injuries and saving lives.
32

A LOOK AHEAD
TO 2018
MAKE ROOM FOR LIFE                                                     Our job is to side with the many Canadians who are increasingly
                                                                       time-starved, commuting and working longer hours than ever
The world is changing. Life is changing. Home is changing.             before, and in record levels of debt. In a world filled with
Urbanization and technology continue to change our lives               uncertainty, expectations, and everyday pressures, we want to
everywhere. People are moving from the country to cities               be a force for good to show Canadians what is
like never before.                                                     possible – in their homes and in the world. The Beautiful
                                                                       Possibilities positioning was introduced in Fiscal Year 2018 and
This means new living conditions for the many people, and              will be central to how we communicate with Canadians and how
breaking conventions around the traditional living room, which         we invite them to participate with our brand.
allows us to redefine this space. For many it’s now a space
to meet with friends and family, celebrate with good food and          A GREAT PLACE TO WORK
conversation, play with children, and renew physically
and mindfully. The possibilities are endless!                          At IKEA, we wish to create a unique, meaningful and trusted
                                                                       place to work; a place to have a career. One of the many ways
To support this change, our stores have remodeled their living         IKEA is caring of our co-workers is through implementing
room showrooms to inspire customers with affordable and                a new Employment Standards Policy. We will continue to
relevant home furnishing solutions to meet the unique needs            commit to our co-workers through providing guaranteed hours,
of their living room space.                                            great rewards and benefits and ahead-of-time schedules, so all
                                                                       co-workers can plan their life in advance.
BEAUTIFUL POSSIBILITIES
                                                                       BECOMING MORE ACCESSIBLE
In Fiscal Year 2018, IKEA Canada will finalize our Retail
Direction for the next 10 years. At IKEA, we are clear about our       In Fiscal Year 2018, IKEA continues to move ahead with our
vision to create a better everyday life for the many people.           ambition to double the number of stores from 12 to 24 and
This vision is central to our Retail Direction and it is anchored in   expand from coast to coast. We recently announced a new
our inclusive and optimistic point of view on the world.               store in London, Ontario and construction is underway on IKEA
                                                                       Quebec City, which will open in summer 2018. Additionally,
                                                                       a new Customer Distribution Centre in Richmond, BC will
                                                                       further enable IKEA to have products closer to our customers,
                                                                       when it opens in spring 2018.
34                                                                                                                                                                                             35

     IKEA IN CANADA
                PICK-UP & ORDER POINTS

     13 WINDSOR, ON           16 ST. CATHARINES, ON

     14 LONDON, ON            22 WHITBY, ON

     15 KITCHENER, ON         27 QUEBEC CITY, QC

                COLLECTION POINTS

     01 NANAIMO, BC           29 BATHURST, NB

     02 VICTORIA, BC          30 SAINT JOHN, NB

     05 KELOWNA, BC           31 MONCTON, NB

     10 SASKATOON, SK         32 CHARLOTTETOWN, PE                                              06                                                                   32              35
     11 REGINA, SK            33 NEW GLASGOW, NS
                                                                                                                                                               29
     28 FREDERICTON, NB       34 SYDNEY, NS                                                                                                                                               34
                                                                        03                  07
                              35 ST. JOHN’S, NL
                                                                                                     10                                             27               27
                                                                                           04                                                                                  31
                IKEA STORES
                                                                                                                                                26
                                                                 01                                                                                                                        33
                                                                                                08             12                          24
     03 COQUITLAM, BC         18 BURLINGTON, ON
                                                                 02
     04 RICHMOND, BC          21 ETOBICOKE, ON                                                                                            23                                                   36
                                                                                                                                                          28
     06 EDMONTON, AB          23 OTTAWA, ON
                                                                        04
                                                                                                                          37                                        25     30
     07 CALGARY, AB           24 MONTREAL, QC                                   05              09        11
     12 WINNIPEG, MB          26 BOUCHERVILLE, QC                                                                                    19                                   20
                                                                                                                                                           22
     17 NORTH YORK, ON        36 HALIFAX, NS                                                                        17
                                                                                                                                                                                    18
     19 VAUGHAN, ON           27 QUEBEC CITY, QC (SUMMER 2018)
                                                                                                                               15
                              14 LONDON, ON (FALL 2019)
                                                                                                                         13                                     21

                WINDFARM                       DISTRIBUTION CENTRE
                                                                                                                                14                   16

     08 DRUMHELLER, AB              20 MISSISSAUGA, ON    04 RICHMOND, BC (SPRING 2018)
                                                                                                                                               14
     09 PINCHER CREEK, AB           25 BROSSARD, QC       37 BEAUHARNOIS, QC (FALL 2019)
36                                                                                                                                                                                                                 37

    MEET OUR                                                                                                          MEET OUR
    MANAGEMENT TEAM                                                                                                   STORE MANAGERS

                                                              08                            11
                                                  06

                                                                                                      13
                                                                                                                        ALAIN CLOUTIER              ANNIKA LENOIR             BRIGITTE BABIKIAN            ISABELLE AUCLAIR
                                                                          09                                          Montreal Store Manager     Quebec City Store Manager     eCommerce Manager         Boucherville Store Manager
                   02
                                      05
                                                                                     10

                                                                                                           14

                                                                                                                        IVANA COLATOSTI             JANET MCGOWAN              JENNIFER ALLEN               JULIE BELANGER
                                                                                                                      Etobicoke Store Manager    North York Store Manager    Winnipeg Store Manager   Customer Support Centre Manager

            01                                                                                   12

                                 03                                07
                                             04

                                                                                                                          LENA WIRMOLA               RANDY GATT               ROBINDER MAKKAR                SANDY EVINOU
                                                                                                                      Burlington Store Manager   Vaughan Store Manager       Edmonton Store Manager        Calgary Store Manager

IKEA CANADA MANAGEMENT TEAM
01 Lauren MacDonald   04 Stephen Bobko 07 Liz Wilson       10 Tanya Bevington       13 Geoffrey Macdonald
   Marketing Manager		 HR Manager		 Deputy Retail Manager		 Communications Manager		 Deputy Chief Financial Officer

02 Niclas Karlsson-Järnkrok 05 Laura Barbisan 08 Bruno Dumas 11 Brendan Seale      14 Bilkis Zachariah
   Deputy Retail Manager		 Sales Manager		 Sales Manager		 Sustainability Manager		 Chief Financial Officer

03 Kathy Davey             06 Gerard Bos                   09 Andreas Grill       12 Marsha Smith
   Communication &		          Customer Experience Manager		   Logistics Manager 		 President                              STEVEN FOSTER                SUE COULET                 XIAO CHEN               ZULFIYA NURGALIEVA
   Interior Design Manager                                                                                             Coquitlam Store Manager    Halifax Store Manager      Richmond Store Manager        Ottawa Store Manager
38                                                        39

     ABOUT IKEA
     CANADA
     IKEA Group is a leading home furnishing retailer
     with 357 stores in more than 29 countries
     worldwide, which are visited by 817 million people
     every year. IKEA Canada has 13 stores, an
     eCommerce virtual store, six Pick-up and order
     Points and 13 Collection Points. The company also
     announced plans to open new stores in Quebec
     City and London, Ontario. Last year, IKEA Canada
     welcomed 28 million visitors to its stores and 95
     million visitors to the IKEA.ca website. Founded
     in 1943, IKEA’s business philosophy is to offer
     a wide range of products of good design and
     function at prices so low, the majority of people
     can afford them. For more information on IKEA
     Canada, please visit: www.IKEA.ca.
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