Ingka Group reports a 5% increase in its IKEA retail sales as the company continues to transform its business
Ingka Group today announced IKEA retail sales of EUR 36.7 billion for the financial year 2019 (EUR 34.8 billion FY18). This represents an increase of 5% from last year, at constant currency rate. This follows a number of investments this year, including the launch of new IKEA stores in cities, strengthening the home delivery network, accelerating investments in renewable energy and digital development, as a part of its ongoing journey to become even more affordable, convenient and sustainable.
In a fast-changing retail environment, Ingka Group continues to accelerate growth throughout its IKEA touchpoints, improving how and where it meets customers to best serve their needs.
Customer visits to IKEA stores remained at a strong level of 839 million, visits to IKEA.com also increased by 10% to nearly 2.6 billion. In addition, online sales grew by 46% over the year, amounting to about 11% of total sales. As the company grows, it is committed to strengthening its positive impact, making sustainability a priority in its everyday work.
“We have had a really positive year. While going through one of the biggest transformations in our history, we’ve maintained strong performance across our business, thanks to all the amazing colleagues across the IKEA world, who continue to show leadership and entrepreneurship every day. We have a simple, yet powerful vision, to create a better everyday life for the many people, that we all want to deliver to, which is truly visible this year,” said Jesper Brodin, CEO, Ingka Group.
Ingka Group is continuously innovating around the IKEA experience. Over the year, the company has opened seven traditional stores, 11 smaller IKEA stores and planning studios in major cities like Moscow, New York, Paris and London. Plans are underway for further stores in Copenhagen, Shanghai and Tokyo, among others. The company has launched a new IKEA app, making it easier for customers to search, find and buy IKEA products, whenever and wherever they choose.
Ingka Group is investing across the company to drive its retail transformation, including new solutions to improve the customer experience. The company acquired 49% of the kitchen installations company, Traemand. In addition, the investment part of the company, Ingka Investments, made several minority investments in companies such as Optoro, Ori, LivSpace and Retour Matras, among others this year.
Recently, the company shared that it has accelerated its investments in renewable energy and will generate as much renewable energy as it consumes in its operations, exceeding its 2020 target. The company is also making sustainability a core part of its retail operations, recently announcing that the country retail managers will take on the role of CSO, country chief sustainability officer, in each of their respective markets. They will lead IKEA’s activity on critical topics, such as sustainable living, renewable energy and equality, across 30 countries.
“We need to grow in a responsible way and are going further and faster in demonstrating business success through long-term sustainable growth. It is our generations’ biggest responsibility and we know that our future success depends on our ability to make a positive impact on people and the planet, which is why we are integrating sustainability into every aspect of our retail operations,” said Jesper Brodin.
Inter IKEA Group also announced today total IKEA retail sales of EUR 41.3 billion across all 12 franchisees
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