Sales at IKEA stores in Southeast Asia topped SGD 1 billion for the first time this year, reflecting healthy growth for a big-box retail business that is meeting a new generation of shoppers and creating fresh passion for home furnishing.
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With more than 3,400 co-workers, IKEA met 98 million visitors in stores and shopping centres, operated IKEA e-commerce in all three of the markets, opened the first in-store interior design services touchpoint in Singapore and sold 113,000 BILLY bookcases – along with thousands of other affordable home furnishings.
As one of 12 IKEA franchisees around the world, the turnover posted by IKEA’s eight large, full-format IKEA stores in Southeast Asia – including two in Singapore – contribute to the total result by the global franchisor, Inter IKEA Group. IKEA’s financial year runs from Sept. 1 2018 to Aug. 31 2019.
In the region, IKEA stores and e-commerce are in three markets: Singapore, Malaysia and Thailand. When the retail sales are combined with rental income generated from the three IKEA-IKEA Southeast Asia anchored shopping centres in the region, the total revenue reached SGD 1.21 billion – 20% more than last year.
“These results show that our IKEA stores and shopping centres have fantastic potential to grow. We make a difference to many people by making life more comfortable, more beautiful and more sustainable – all at an affordable price,” said Christian Rojkjaer, Managing Director of IKEA Southeast Asia.
“We face increasing competition and changing customer behaviors, but our vision to create a better everyday life for many people is perhaps more powerful than ever. We aim to offer the best deal there is in every market and we have a wide price ladder within our range so, even in challenging times, IKEA has something for everyone no matter the size of his or her wallet,” he added.
“Our shopping centres add to the total value by creating meeting places that are the hub of the community – and, together with IKEA, provide a great day out,” he continued.
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The new Toppen shopping centre will be anchored by IKEA Tebrau in Johor Bahru and features a rooftop with outdoor play spaces, a sports zone, and a community garden. It opens on November 13, 2019.