Ikea unpacks surge in full-year sales
Full-year sales at Inter Ikea Group have surpassed €40bn, the Swedish flatpack retailer announced on Wednesday.
Sales of products and services both online and at its 433 stores rose 6.5% in the year to 31 August, to reach €41.3bn.
Like-for-like sales, which strip out the impact of new openings, were ahead 1.2%, while e-commerce surged 43%, according to Reuters. Ikea told the agency that online now accounts for 7% of all sales.
The 76-year old retailer is best known for large out-of-town superstores, but is increasingly looking to increase its e-commerce offering and to open smaller stores. During the year, 12 new sites opened, two of which were smaller shops including Ikea La Madeleine in the centre of Paris.
"We’re moving closer to our customers make shopping more convenient," said Torbjörn Lööf, chief executive of Inter Ikea.
According to the Financial Times, 1.3m people visited the La Madeleine shop in the first five months of it opening.
Ikea’s retail portfolio, which reaches across 50 countries, is owned by 12 franchisees. Ingka Group, one of the biggest with 374 stores, reported a 5.0% rise in retail sales in local currency to €36.7bn, with full-year online sales surging 46%.