IKEA franchisee posts 41% revenue increase

IKEA franchisee posts 41% revenue increase

IKANO Retail, the franchisee behind IKEA Philippines, announced on Wednesday that its total revenues rose by 41.2% to P60.1 billion or €1.01 billion for its financial year ending August.

For IKEA Philippines, turnover was placed at P6.4 billion for the year.

“After two years of retail disruptions and COVID restrictions, people made 113 million visits to our stores and shopping centers,’’ Ikano Retail Chief Executive Christian Roejkjaer said in a media release.

Aside from the Philippines, Ikano Retail also brought the Swedish home furnishing brand to Mexico, Singapore, Malaysia, and Thailand.

“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,” Mr. Roejkjaer said.

According to the firm, its performance was driven by sales growth, the opening of two new stores, and more foot traffic. It also said it exceeded the €1-billion mark for the first time in its latest financial year.

In the Philippines, Ikano Retail owns and operates the world’s largest IKEA in Pasay City, click and collect service, IKEA food, and IKEA for business.

The top earning categories for IKEA Philippines were bedroom furniture and workspaces. The Brimnes wardrobe with three doors and the Alex drawer unit were among the top-selling products.

“People were also getting organized in their kitchens, taking home 83,865 pieces from the IKEA 365+ series of food storage solution,” the firm said.

It added that the food segment “was a hit among customers in the Philippines in its opening year, with nearly 8 million plant, vegetable and meatballs sold.”

The firm said that its total e-commerce sales expanded by 16% and recorded 122.5 million visitors on IKEA websites across its five markets.

Ikano Retail is one of 12 IKEA franchisees operating around the world. It has 13 IKEA stores and five IKEA-anchored shopping centers in its portfolio. — Luisa Maria Jacinta C. Jocson

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