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Business News/ Companies / Company Results/  Ikea India loss widens to 807 crore in FY21 amid pandemic lockdowns
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Ikea India loss widens to ₹807 crore in FY21 amid pandemic lockdowns

Net sales at Ikea India grew 7.36% to ₹607.7 crore in FY21, the data showed. During the year, the retailer also reported temporary store closures due to the pandemic.

The company had to close its Mumbai store and halt online operations in FY21, slowing sales growth. (PTI)Premium
The company had to close its Mumbai store and halt online operations in FY21, slowing sales growth. (PTI)

NEW DELHI : Swedish furniture and home furnishings retailer Ikea’s Indian unit widened its net loss to 807.5 crore in the financial year ended March 2021 from 720.7 crore in the previous year, according to the latest available data accessed by business intelligence platform, Tofler.

Net sales at Ikea India Pvt. Ltd grew 7.36% to 607.7 crore in FY21, the data showed. During the year, the retailer also reported temporary store closures due to the pandemic.

Sales in FY21 increased at a much slower pace than the 64.68% growth the company recorded in the year ended March 2020 to 566 crore.

The spread of covid-19 in early 2020 and subsequent lockdowns as well as restrictions on mobility impacted Ikea India’s business.

“During the FY 2020-21, the company’s expansion plan and operations were impacted due to the global pandemic of covid-19. However, the company, not only managed its operations in an effective way but also extended its support to the society by way of donation of food, rations, medical equipment etc. through its various partners for helping the needy people and for minimising the spread of pandemic. The company also ensured the safety of its co-workers while managing its operations," Ikea hadsaid in its financial report for FY21.

In FY21 as the pandemic waves surfaced, the company had to close its Mumbai store and also halt online operations for a certain period due to the lockdown measures implemented by the governments in Maharashtra, Telangana and Karnataka in order to prevent the spread of the pandemic, it said. During the year ended March 2021, the company was running a store each in Hyderabad and Navi Mumbai and was in the process of setting up stores in other cities. Ikea also started e-commerce operations in Bengaluru during the year; earlier this month, the retailer opened its maiden big box store in the capital city of Karnataka.

In response to a query, a company spokesperson said India is an important market for Ikea.

“We are in India for the long term and are in the initial years of operations in the country where we continue to invest in our priority markets to offer customers an omni-channel experience. Ikea is focussed on reaching the many people in our key markets with products and solutions that are affordable, sustainable, follow the best quality standards and relevant to their life at home," the spokesperson said.

Ikea opened its first store in India in Hyderabad in 2018 followed up by the Navi Mumbai store in December 2020. Meanwhile, it has been stepping up its presence online with deliveries in Mumbai, Pune, Hyderabad and Bengaluru. Ikea has also announced plans to open more small format stores in the country.

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Published: 27 Jun 2022, 12:27 AM IST
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