Home >News >World >IKEA eyes return to growth this year after sales shrank 4% in 2019/20

IKEA eyes return to growth this year after sales shrank 4% in 2019/20

FILE PHOTO: Ikea in Tottenham is pictured as it re-opens, following the outbreak of the coronavirus disease (COVID-19), London, Britain, June 1, 2020. REUTERS/John Sibley/File Photo (REUTERS) — FILE PHOTO: Ikea in Tottenham is pictured as it re-opens, following the outbreak of the coronavirus disease (COVID-19), London, Britain, June 1, 2020. REUTERS/John Sibley/File Photo **(REUTERS)**

1 min read . Updated: 06 Oct 2020, 08:30 PM IST Reuters

Jon Abrahamsson Ring, chief executive since March, told Reuters sales at stores open for a year or more shrank around 10%, against a 1% rise the year before
Ingka Group, the main IKEA franchisee, said separately that sales at its 378 stores shrank 4% in the fiscal year to 35.2 billion euros

STOCKHOLM : Retail sales at IKEA, the world's biggest furniture group, shrank 4% in the year to the end of August as demand recovered quickly from a slump caused by COVID-19, brand owner and franchisor Inter IKEA said on Tuesday.

Retail sales, of products and services at all 445 IKEA stores and online, came in at 39.6 billion euros ($46.7 billion).

Alcoholic beverage makers to see sharp recovery in volumes: Report

2 min read . 10:08 AM IST

A woman receives a shot of Covid-19 vaccine in Indonesia

AstraZeneca Covid vaccine cleared for emergency use in Indonesia

1 min read . 10:05 AM IST

From April, all business-to-business transactions above Rs50 crore barring select services will need e-invoicing. (Photo: iStock)

E-invoicing net widened in tax compliance drive

1 min read . 09:58 AM IST

Pedestrians walk along Grant Avenue in the Chinatown neighborhood of San Francisco, California.

US releases guidelines for vaccinated Americans: 10 things to know

3 min read . 09:58 AM IST

E-commerce jumped 45% to account for 15% of total retail sales, and Inter IKEA said online sales remained high even after stores, most of which closed temporarily for an average of four weeks in the early stages of the pandemic, re-opened.

Jon Abrahamsson Ring, chief executive since March, told Reuters sales at stores open for a year or more shrank around 10%, against a 1% rise the year before.

Adjusted for the temporary closures, however, comparable sales were roughly unchanged as the coronavirus crisis boosted people's interest in their homes, he said, adding that he expected sales to return to growth this year.

IKEA is shifting from large out-of-town stores towards online and smaller inner-city stores as it adapts to digitalisation and new shopping habits.

Ingka Group, the main IKEA franchisee, said separately that sales at its 378 stores shrank 4% in the fiscal year to 35.2 billion euros, with online sales soaring 60% to make up 18% of its total turnover.