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Ikea profits increase as it pushes into new markets

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Ikea has recorded growing profits and sales and will continue to expand its global footprint.

The Swedish furniture retailer made a net profit of €3.5bn, a 5.5% increase on last year, while total sales rose by 11.2% to €31.9bn. 

Chief Executive Peter Agnefjäll outlined that growth was fairly evenly distributed in all the 28 countries in which it operates, although Germany had been a star performer with record growth.

Southern Europe, which had a difficult time during the recession, was also “seeing a positive development”, while North America continued to do well, reported The Times.

Ikea’s newest market — South Korea — was performing above expectations, according to Agnefjäll. “We have a great year behind us and have invested considerably in sustainability, in creating a better offer as well as being more accessible,” he said.

For employees at Ikea the results are shared. During the year €105m was set aside for the group’s loyalty programme. Since the Tack! scheme was introduced, a total of €305m has been allocated to Ikea staff, The Times cites.

Ikea has recently entered talks with BHS to take space in its department store on Oxford Street and also opened its first order-and-collection point in Norwich, which it described as “bridging the gap between online and in-store shopping”.

Published on Friday 11 December by Veebs Sabharwal

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