Growth decelerated in fiscal 2016, with sales climbing 7.9% at constant currency compared with the 8.9% rise the company had logged the prior fiscal year.
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Sweden’s IKEA, the world’s biggest furniture retailer, reported on Tuesday its fiscal full-year sales grew 7 per cent to a record 34.2 billion euros (S$52.26 billion).
Growth was driven by performance in China, which is IKEA’s fastest growing market, together with Australia, Canada and Poland. Same-store sales climbed by 4.8%.
Germany was still the retailer’s largest market, closely followed by the United States. Marocco is the only new country IKEA has opened stores in over the past two years.
“Our focus on kitchens, kitchen equipment and dining rooms has proven very popular with customers and contributed to the strong result in the past year”, IKEA Group chief executive Peter Agnefjäll said in a statement.
Ikea Group plans to open its first stores in India and Serbia in the coming years, it said.
IKEA Group is a franchisee to brand owner Inter IKEA Group. Switching to LED light bulbs will save money as well as energy as they can last up to 20 years, and use up to 85% less energy than traditional incandescent bulbs. “These efforts are only made possible by the engaged co-workers who have, as always, done an awesome job during the year”, concludes Peter Agnefjäll.
It recently began to publish its sales figures in September and profits in December. But in recent years IKEA has adapted to changing consumer behavior, increasingly rolling out so-called click-and-collect points that also carry a limited range of products.
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The IKEA vision is to create a better everyday life for the many people and we offer well designed, functional and affordable, high quality home furnishing, produced with care for people and the environment.
