IKEA expands low-cost push in Canada and seeks tax relief on used furniture

By Tahani Elghazaly
Published September 19, 2026

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IKEA is expanding its affordability strategy in Canada, from second-hand furniture to lower-cost meals, while urging the federal government to remove GST/HST from certain used household goods as consumers continue to face elevated housing, food and everyday living costs.

IKEA Canada CEO and chief sustainability officer Selwyn Crittendon said the retailer's Sell-Back program, which provides store credit for eligible gently used IKEA furniture before the items are resold, is growing quickly as the company expands its broader reuse and circular-retail business.

The company is also pressing Ottawa to change how sales taxes apply to second-hand purchases. IKEA argues that an item can effectively be taxed when it is first sold new and again when a registered business resells it as used furniture, adding costs for consumers choosing second-hand products.

IKEA Canada has proposed removing GST/HST from second-hand household goods costing $250 or less, while also seeking tax relief for household repair work valued at up to $50. The proposals are recommendations to the federal government and are not currently enacted tax exemptions.

The strategy reflects a renewed focus on steady everyday low prices rather than relying mainly on temporary promotions. Juvencio Maeztu, president and CEO of Ingka Group, the largest operator of IKEA stores worldwide, said the company is seeking savings through product design, materials and supply-chain efficiencies.

In Canada, IKEA's retail sales fell 2.5 per cent last year even as store visits increased 1.6 per cent and online traffic jumped 11.2 per cent, showing that more consumers are interacting with the retailer despite lower overall sales value.

IKEA has also extended its affordability push to food, introducing $1 breakfasts as part of its 50th-anniversary offers in Canada. Crittendon told The Canadian Press that a family of four can still eat at an IKEA restaurant for under $30.

The retailer says the growth of second-hand shopping supports its tax proposal. Its federal submission cites research showing 31 per cent of Canadians buy used goods more than once a month, while 73 per cent of second-hand shoppers do so to stretch their budgets. Among Gen Z consumers, the monthly figure rises to 42 per cent.