The Role of Food in IKEA's Revenue Growth

IKEA has long recognized the importance of food sales in driving customer engagement and revenue, with about 6% of its global revenue stemming from food, amounting to approximately $2.5 billion annually. The introduction of food offerings, including its iconic meatballs, effectively keeps shoppers in-store longer, which often leads to increased furniture sales. Notably, in India, a significant portion of visitors come primarily for the food rather than the furniture, which highlights an opportunity for the brand to leverage this interest. Implementing strategies similar to those tested in other markets, such as offering discounts on furniture based on food expenditures, could create a win-win situation that boosts foot traffic and overall sales.