IKEA reports sales dip as it reveals plans for 50 new stores worldwide
Ingka Group has announced that IKEA retail sales reached €35.2 billion in the year to 31 August compared to €36.7 billion in the previous 12-month period.
It has also revealed that its franchisees will open 50 new stores worldwide.
The group’s trading in the period was impacted by the temporary closure of 75% of IKEA stores across the world due to Covid-19 lockdowns. However, Ingka said it has decided to return the government stimulus support it received for employee wages at the beginning of the pandemic as the business has recovered faster than expected.
During the year, IKEA’s online sales grew by 60% to account for around 18% of total sales.
Jesper Brodin, chief executive of Ingka Group, said: “Our strong performance over this unique time, shows the resilience of our business and the impressive leadership among colleagues across IKEA. During the last six months we managed to quickly adapt to meet the new needs of our customers – and even if our values have been put to the test it’s clear that our purpose is what unites us. We are determined to create a better everyday life for the many people in a time when home has never been more important.”
Over the course of the year, IKEA accelerated its retail transformation by re-purposing its stores to fulfilment units, implementing click & collect services, offering pick-up and drive-thru options and in some cases even turning store car parks into Covid-19 testing facilities.
The retailer also opened 26 new IKEA shops in places like Shanghai, Seoul, Moscow and Tokyo, and developed a more seamless customer experience with new digital solutions.
