IKEA Faces Declining Sales And Profitability In Korea

IKEA Korea is seeing sales slow and profits collapse after peaking during the COVID-19 era, reporting an 88.1% operating profit drop in 2023 and revenue remaining around 630 billion won. The company blames online competitors, changing consumer preferences for convenience, and limits of its DIY model, and is shifting to online services, AI-enabled automated warehouses, paid assembly, and smaller urban stores. These moves aim to regain competitiveness in the Korean market.