Ikano Retail, the IKEA franchisee in the Philippines of the popular Swedish-owned do-it-yourself home furnishing store, reported sales turnover of P6.4 billion in its first year of operation in the country.
In a statement, Ikano Retail said the IKEA franchisee in the Philippines and four other countries – Mexico, Singapore, Malaysia and Thailand — exceeded P60.1 billion (€1 billion) in sales for the first time in its 2022 financial year or 41.2 percent higher than 2021.
With 13 IKEA stores and five IKEA-anchored shopping centres in its portfolio, Ikano Retail is one of 12 IKEA franchisees operating around the world.
The retailer’s revenue surpassed the EUR 1 billion mark for the first time as it grew sales in its five markets, opened two new stores and welcomed more visitors than ever before in its last financial year.
In its first year of operations since opening on November 25, IKEA Philippines ended its 2022 financial year on 31 August with a turnover of P6.4 billion. Ikano Retail owns and operates the world’s largest IKEA with IKEA Pasay City, an omnichannel business with ecommerce, Click & Collect pick-up points, IKEA Food and a B2B arm, IKEA for Business.
For Singapore, the company reported sales turnover of P14.4 billion or 6.5 percent higher than 2021; Malaysia with P20.5 billion or 37.4 percent increase; Thailand with three outlets reported total sales of P15 billion or 22.4 percent more than 2021; and Mexico P3.8 billion or 106.5 percent than the previous financial year.
‘’After two years of retail disruptions and COVID restrictions, people made 113 million visits to our stores and shopping centres,’’ said Christian Roejkjaer, Ikano Retail CEO. ‘’It’s clear people were looking for a great day out and turning to IKEA for home furnishing inspiration, Swedish meatballs and affordable products that make life at home a little more comfortable and sustainable.’’
Ikano Retail also met 122.5 million visitors on IKEA websites across its five markets and grew its total ecommerce sales 16 percent on last year. Roejkjaer noted that Ikano Retail managed to keep growing amid tough challenges for retailers.
‘’Our shelves were not fully stocked as we would have liked it and our costs went way up. Still, we are leading our markets for affordable, quality home furnishing solutions – and our customers appreciate that.’’
Bedroom furniture and Workspaces were the top earning categories for IKEA Philippines, with the BRIMNES wardrobe with three doors and the ALEX drawer unit among top-selling products.People were also getting organised in their kitchens, taking home 83,865 pieces from the IKEA 365+ series of food storage solutions. IKEA Food was a hit among customers in the Philippines in its opening year, with nearly 8 million plant, vegetable and meatballs sold.
Aside from IKEA Pasay City, Ikano Retail opened a second store in Mexico with IKEA Puebla in its last financial year. In the years ahead, Ikano Retail will continue its expansion in Mexico with a third store already planned. The retailer is set to grow its business further in 2023 with the opening of IKEA Sukhumvit in the heart of metropolitan Bangkok, adding to three existing IKEA stores in the country.
The company also reported there were 122.5 million visits to IKEA websites in Ikano Retail markets, including 17.6 million in the Philippines. It generated P8.5 billion in e-commerce sales in Ikano Retail markets or 16 percent higher than the last financial year. The company also employs 5,001 workers, including 656 in the Philippines.
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The article was originally published in Manila Bulletin and written by Bernie Cahiles-Magkilat.
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