Ikano Retail, the IKEA franchisee that brings Swedish home furnishings to Singapore, Malaysia, Thailand, Mexico and the Philippines, posted SGD 1.63 billion (EUR 1.01 billion) in turnover in its 2022 financial year – up 41.2 percent from last year. With 13 IKEA stores and five IKEA-anchored shopping centres in its portfolio, Ikano Retail is one of 12 IKEA franchisees around the world.
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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.
“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.’’
In Singapore, Ikano Retail owns and operates an omnichannel business with three IKEA stores, ecommerce, interior design and renovation services, kitchen planning studios and its B2B arm, IKEA for Business. IKEA Singapore grew sales by 6.5 percent, closing its 2022 financial year on 31 August with a turnover of SGD 392 million.
Ikano Retail also met 122.5 million visitors on IKEA websites across its five markets and grew its total ecommerce sales 16 percent compared to last year. Mr. 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.’’
Workspaces and bedroom furniture continued to be top earning categories for IKEA Singapore, with the new MATCHSPEL gaming chair and HEMNES day-bed frame with 3 drawers among the top-selling products. Shoppers have been tending toward kitchen organisation, purchasing 442,466 pieces from the IKEA 365+ series of food storage solutions.
From IKEA Jurong’s click-and-collect service to IKEA Tampines’ new Swedish Bistro, IKEA Food remains one of Singapore’s largest food businesses, with Singapore customers ordering more than 3.7 million chicken wings and 1.7 million curry puffs. IKEA Singapore’s food menu was also expanded to include gourmet hot dogs and 11 plant-based dishes.
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Over the last financial year, Ikano Retail opened the world’s largest IKEA store in the Philippines with IKEA Pasay City, as well as a second store in Mexico with IKEA Puebla. In the years ahead, Ikano Retail will continue with 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 Thailand.