Online shopping surge helps lift Ikea's full-year sales

Lloyd Doyle
October 13, 2018

The retailer has an online presence in 35 markets around the globe and saw 2.5 billion visits to its website last fiscal year.

Swedish furniture and home accessories maker IKEA plans to invest almost ₹3,000 crore in the next three years to open three fulfilment centres in Mumbai, Bengaluru and Delhi.

IKEA stores in India house close to 7,500 products, ranging from kitchenware, bathroom accessories, textiles, cleaning products, wardrobes, home electronics, artificial plant décor and more, and are customised as per Indian needs and usage.

"There's a lot of people that chose not to buy from us because they don't have a auto or because they don't have the time to interact with us, so this is what we are exploring now", said Ikea Group CEO Jesper Brodin.

Ikea announced it will open its first store in the Ukraine in 2019, after a decade of negotiations, and on Tuesday the company said it plans to bring its products to South America for the first time with new openings "soon" in Chile, Colombia and Peru.

"Ikea will create a multichannel experience for its customers in India".

"As Karnataka is a priority for us, we are investing Rs 1,000 crore in setting up our popular store and another Rs 1,000 crore in expanding it later", IKEA India Chief Executive Peter Betzel told reporters at its ground-laying ceremony in the city's northwest suburb.

IKEA has 423 stores in 50 countries with a sales volume of 38.3 billion euros. The company will also be launching its e-commerce operations by March next year.

The company aims to open 25 stores in India by 2025. "It will be a faster and bigger expansion than when we've entered new markets before".

"Ikea's transformation means franchisees like Falabella have a menu of options to choose from to jump start their expansion, including physical store formats and digital services".

The UK boss of Ikea has unveiled a spin-off chain of kitchen and bedroom showrooms and described the new high street outlets as the "tip of the iceberg" as it changes its business model to appeal to online shoppers.

In a separate statement, the largest Ikea franchisee, Ingka Group, said its full-year sales rose to €34.8 billion from €34.1 billion a year earlier. Ingka said it experienced sales growth in a majority of its 30 markets, with one of the biggest increases recorded in China.

Other reports by Iphone Fresh

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