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IKEA Reports 4.5% Rise in Sales and Significant Expansion Plans

IKEA Southampton 725 x 500

IKEA has reported annual sales of €38.8bn, up 4.5% in adjusted currencies on the previous year, thanks to strong online growth and new stores.

The company has also confirmed its intention to open in a dozen new countries: Chile, Columbia, Estonia, Luxembourg, Macau, Mexico, Peru, the Philipines, Puerto Rico, Oman and Ukraine.

Inter IKEA - the company that owns the IKEA brand and concept, and franchises the stores - will open the South American stores through a new IKEA franchise named Falabella.

Inter IKEA CEO, Torbjorn Loof, said: "By 2025, we have the potential to reach and interact with 3 billion people. 

"We will offer new and different ways to shop the IKEA product range - online, in remote locations and in city centers. We will introduce smaller store formats and offer a wide range of flexible and affordable services."

In April 2018, IKEA's new CEO, Jasper Brodin, told the Financial Times that the business is 'hungry for growth' and is looking at 'a transformation of our business' over the period 2019-2021.

Mr Brodin advised that 'the speed of change going forward will be incredible,' as the company seeks to respond to changing shopping habits which are increasingly moving online. “The three years will be exceptional when it comes to change, entrepreneurship, test and try and exploring new ways forward.", he added.

Plans include a move away from large, out-of-town store developments to smaller-format city centre branches and 'affordable' home delivery, as IKEA looks to cater to city-dwellers and those without access to vehicles.  The company has already trialled bedroom- and kitchen-only stores in Madrid and Stockholm, respectively, and it has confirmed plans to open small-format stores in ten major global cities, including London, New York and Tokyo.

Earlier today, IKEA opened its first 'Planning Studio' on London's Tottenham Court Road.

Source : Insight DIY Team and IKEA

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11 October 2018

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