Ikano Retail, owner of IKEA Singapore, posts SGD 1.67 billion (EUR 1.08 billion) in total turnover

With 13 IKEA stores and five IKEA-anchored shopping centres in its portfolio, Ikano Retail is one of 12 IKEA franchisees around the world. The retailer’s revenue rose 2.1% year-on-year as it posted mixed performances in its five markets despite welcoming more visitors this year to its stores and centres.

‘’It continues to be tough economic times for all retailers, including us, with higher costs all along our value chain, inflation and a more cautious consumer sentiment. Despite that, our IKEA stores and shopping centres attracted 119.6 million visits, up 5.7 percent from last year,” said Christian Roejkjaer, Ikano Retail CEO. “We continue to add value to communities feeling the pinch by offering affordable home furnishing solutions, inspiring stores and a great day out together with our shopping centres.”

In Singapore, Ikano Retail owns and operates three IKEA stores (IKEA Tampines, IKEA Alexandra and IKEA Jurong), ecommerce, interior design and renovation services, kitchen planning studios, a collection point and its B2B arm, IKEA for Business. It saw a dip in revenue from last year, down 2.0% as it closed its financial year on 31 August with a turnover of SGD384.2 million.

"Despite the headwinds, our stores remained at the heart of our omnichannel experience as we continued to develop ikea.sg and created more ways for customers to meet and shop with us,” said Mr Roejkjaer. “We expanded our fleet of Electric Vehicles in Singapore which now supports 20% of our home deliveries, opened three new collection points in Malaysia to meet customers in states without an IKEA store, launched remote planning by taking our IKEA Planning studio online in the Philippines to meet faraway customers, and we are on our way with two new exciting stores – Thailand’s first IKEA store in the heart of metropolitan Bangkok with IKEA Sukhumvit, and Mexico’s first standalone IKEA store in Mexico with IKEA Guadalajara Expo,” added Mr Roejkjaer.

Storage products dominated total sales rankings for all 13 of Ikano Retail’s IKEA stores, with MALM chest of four drawers, the iconic BILLY bookcase and the KLEPPSTAD wardrobe taking the top three spots respectively. Customers across Ikano Retail’s five markets were also refreshing their tableware, with than 5.5 million plates, side plates and bowls sold from the OFTAS collection. Meanwhile, IKEA Food continued to be a hit among shoppers in Ikano Retail markets as the company recorded 14.5 million visits across all its IKEA restaurants, cafes, bistros and Swedish Food Markets, with visits up 13 percent and total sales up 11.7 percent from last year.

Over its last financial year, Ikano Retail made further strides in its workforce goals amid a dynamic job market. Said Mr Roejkjaer, “We want our 5,254 co-workers to stay relevant, inspired and digitally competent in a changing retail world. We have moved ahead with equal opportunities for promotion, training, representation and development. Concerning positions of leadership, we are at 51% female representation. In all our markets, we have proudly achieved gender pay equity in external audits, and we continue to be all in on ‘equal pay for equal work’, providing part-time and contract co-workers the same benefits as full-timers.”  

It was also a year of sustainability learnings and waste reduction for Ikano Retail. “We took a leap in our community engagement efforts as we developed new community partnerships, facilitated social days for more than 1,000 co-workers, and trained more than 2,000 co-workers in sustainability courses. Across our markets, our co-workers found innovative ways to lead waste reduction in our last mile delivery, using our blue FRAKTA reusable bags to replace cardboard parcels, and shredding used cardboard to replace plastic fillers in carton boxes,” added Mr Roejkjaer. 

Fast facts

1 September 2022 – 31 August 2023 

• 118.4 million visits to IKEA websites across Ikano Retail markets – including 25.1 million in Singapore.
• EUR 157.9 M total e-commerce sales across Ikano Retail markets, up 9% from the last financial year. 
• 4.85 million IKEA Family members across Ikano Retail markets – up 11.3% from the year before. 
• 601,931 IKEA Family members in Singapore, accounting for 55% of total sales in the country.
• 50,800 solar panels on the rooftops of IKEA stores and Ikano Centres. 
• 5,254 co-workers across Ikano Retail – including 1,111 in Singapore.
• 3,500 events, festivals, and activities organised across Ikano Centres. 
• 450,000 loyalty members across five Ikano Centres. 
• 54.6 million meat, plant, chicken, and vegetable balls sold across five countries. 11.6 million in Singapore.

Turnover from Ikano Retail’s IKEA stores contributed to the total result to be reported on 12 October by the global IKEA franchisor, Inter IKEA Group. The table below reflects Ikano Retail’s store and centres turnover.