Wednesday, July 08, 2020

Ikea nets high profits in SE Asia

Sep 26. 2019
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By The Nation

Sales at IKEA stores in Southeast Asia hit the Bt29 billion mark in fiscal year September 1, 2018 to August 31, 2019, reflecting healthy growth for a big-box retail business that is meeting the needs of a new generation of shoppers and creating fresh passion for home furnishing.

Its more than 3,400 co-workers met servers some 98 million visitors in it stores and centres, rolled out ecommerce in Thailand, embarked on construction projects in new markets and helped sell 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 the eight large IKEA stores in Southeast Asia – including two in Bangkok plus a Pick-Up and Delivery Point in Phuket – contributed to the total result released Wednesday by the global franchisor, Inter IKEA Group.

The company owns and operate IKEA stores and ecommerce operations in three active markets: Thailand, Malaysia and Singapore. When its retail sales are combined with rental income from its three IKEA-anchored shopping centres in the region (including Megabangna), total revenue reached Bt29 billion – 20 per cent more than last year, Bt8.9 billion from Thailand, the next Bt11.9 billion from Malaysia and the remaining Bt8.2 billion from Singapore.

“These results show that our IKEA stores and shopping centres have fantastic potential to grow,” said Christian Rojkjaer, Managing Director of IKEA Southeast Asia. “We make a difference to many people by making life more comfortable, more beautiful and more sustainable – all at an affordable price."

“We face increasing competition in our markets and changing customer behaviour,” he added, “but our vision to create a better everyday life for 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.

"Our shopping centres add to the total value by creating meeting places that are the hub of the community – and provide a great day out for shoppers.”

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