Ikano Retail, owner of IKEA Malaysia, posts EUR 1.09 billion in total turnover

With 14 omnichannel IKEA stores and five IKEA-anchored shopping centres in its portfolio, Ikano Retail is one of 12 IKEA franchisees around the world. The retailer posted a modest performance against last year, with total revenue rising 1.3 percent year-on-year.

In Malaysia, Ikano Retail owns and operates an omnichannel business with four IKEA Stores (IKEA Cheras, IKEA Damansara, IKEA Batu Kawan and IKEA Tebrau), e-commerce, interior design and renovation services, collection points and its B2B arm, IKEA for Business, among other services. Also in its portfolio are four shopping centres (IPC, MyTOWN, Toppen and Klippa). It closed its financial year on 31 August with a total turnover of EUR 311 million¹ across its stores and centres.

“Worldwide, retail had a tough year, and so did we,” said Ikano Retail CEO Christian Roejkjaer, acknowledging the impact inflation and the rising costs of living have had on consumers. “But coming together to turn a challenge into an advantage is the very essence of our Ikano and IKEA company culture,” Mr Roejkjaer added.

Despite mixed performances across its markets, the retailer is committed to lowering prices on essential and best-selling home furnishing items, food and services. “We’re passing on savings where we can because we know how tough it can be for households with thinner wallets,” said Mr Roejkjaer.

At a time of high inflation and living costs, IKEA Malaysia is siding with the many people by investing in lower prices to help Malaysians feeling the pinch find savings where it matters. The furniture retailer has lowered prices again this year on over 2,000 articles, majority of which are essential or best-selling items, from its GLADOM tray table to STRANDMON armchair. IKEA Malaysia has also designed tiered pricing to deliveries starting at RM 49 (for parcels weighing between 25kg and 40kg) to meet the different budgets of customers looking to stretch their savings further.

Across Ikano Retail markets, IKEA storage solutions once again met the needs of customers looking to declutter their spaces. Items from the MALM, PAX, and BILLY families took the top three spots respectively, based on total sales value from all 14 of Ikano Retail’s IKEA stores. In Malaysia, 73,620 BILLY bookcases were sold as many turned to the iconic IKEA shelf to keep their homes and offices organised. Meanwhile, IKEA Food remained a destination across markets, again welcoming 14.5 million visits across all its IKEA restaurants, cafes, bistros and Swedish Food Markets. Total food sales were down 3 percent, partly impacted by global food supply, but the business will continue to meet the needs of customers looking for delicious and more affordable food options.

In addition to its IKEA stores, Ikano Retail expands its portfolio by developing land and investing in office, residential and mixed-use projects with its Ikano Centres business. Its five shopping centres in Malaysia and Thailand serve as vibrant Meeting Places for the communities around it. In FY24, Ikano Centres successfully hosted various events across the five shopping centres. In Johor, Ikano Centres also celebrated the openings of Game On and Forum Tebrau at Toppen to serve the active lifestyle community in South Malaysia by providing more spaces and activities that cater to health, fitness, and entertainment enthusiasts.

Said Mr Roejkjaer, “Big thanks to the Ikano Retail team that took us through the year to become leaner, more agile and making our store-based omnichannel business model more customer focused than ever.”

¹ All financial figures are reported in Euros, the official reporting currency of Ikano Retail.

Fast facts

1 September 2023 – 31 August 2024 

• EUR 188.94m Total ecommerce sales across Ikano Retail markets, up 6% from the last financial year.
• 49.3 million Meat, plant, chicken and vegetable balls sold across five countries; 26.9 million in Malaysia.
• 5.54 million Bowls and plates from the OFTAST series sold; 1,542,609 in Malaysia.
• 4.93 million IKEA Family members across Ikano Retail markets – up 1.65% from the year before.
• 1.74 million IKEA Family members in Malaysia, accounting for 50.1% of total sales in the country.
• 791,000 Online customers served, 10% more to last year.
• 550,000 CRM members across five Ikano Centres, a 22% increase.
• 176,343 BILLY bookcases sold across Ikano Retail markets, up 7% from last year.
• 4,942 Co-workers across Ikano Retail – including 1,347 in Malaysia.

Turnover from Ikano Retail’s IKEA stores contributed to the total result to be reported on 8 October by the global IKEA franchisor, Inter IKEA Group. The table below reflects Ikano Retail’s store and centres turnover.