Ikea, the world’s top furniture company, says its sales jumped 11.2 per cent during its 2014-2015 fiscal year, thanks to gains in nearly all markets. The Ikea Group, the Dutch holding company that controls the Swedish brand’s 328 stores in 28 countries, said sales totalled 31.9 billion euros ($A50.9 billion). China was the company’s fastest growing market followed by Russia, with most of the sales growth, 5.1 per cent, coming from existing stores. Adjusted for currency fluctuat
ions, sales rose by 8.9 per cent.
“We are continuing to grow strongly in China thanks to the middle class which is showing more and more interest in home comfort,” Peter Agnefjaell, CEO, Ikea, said Wednesday.
Ikea opened three new stores in China during its 2014-2015 fiscal year.
Meanwhile, Ikea said it registered record growth in Germany, and North America performed well.
Still absent from Africa and South America, the specialist in flat-pack furniture that budget-minded consumers can assemble themselves, opened 13 new stores and welcomed 770 million visitors.
“Looking ahead, we see many opportunities for us to continue to grow through our stores,” Agnefjaell said in a company statement.
He declined to confirm reports that the group aims to create 100,000 new jobs by 2020.
“We are pursuing a growth strategy and we’ll need to recruit in the years to come,” he told AFP.
While Asia was a priority, he said Ikea’s management had always put emphasis on getting things right before studying opportunities for further development.
As it is family-owned, Ikea is required to publish only limited information about its results. The company’s annual report will be published in December.
AFP
