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IKEA franchisee in Southeast Asia and Mexico grows turnover 3.3% during tough year

IKEA franchisee in Southeast Asia and Mexico grows turnover 3.3% during tough year
Corporate newsRetail13 October 2021Last edited: 18 August 2023

Ecommerce surges as people turn to IKEA

SINGAPORE – Ikano Retail, the IKEA franchisee that brings Swedish home furnishings to Singapore along with three other markets, posted SGD 1.16 billion in turnover in its last financial year – up 3.3% in a year marred by COVID closures and turbulent times for the company’s shopping centre business.

“We lost 17% of our trading days, faced the worst supply challenges in our history and contended with limits on food operations and further restrictions,’’ said Ikano Retail CEO Christian Rojkjaer. “But, even amid COVID, we executed expansion plans, grew our ecommerce sales by 57% and safeguarded jobs. Most importantly, we continued to help our customers make life at home better.”

With 11 IKEA stores and five IKEA-anchored shopping centres in its portfolio, Ikano Retail operates in Malaysia, Singapore, Thailand and Mexico. The company is one of 12 IKEA franchisees around the world and turnover from its IKEA stores contribute to the total result to be reported Thursday (1300 CET) by the global IKEA franchisor, Inter IKEA Group.

Much of the growth comes from Singapore and Mexico, where the company opened new stores. In Singapore, Ikano opened IKEA Jurong – Southeast Asia’s first small-format IKEA store, selling the full range through digital solutions and multi-skilled co-workers. In Mexico City, Ikano opened the first IKEA in Latin America and clocked almost 15 million visits to its IKEA Oceania store and website combined. Ikano also entered the home renovation and design business, with new IKEA Planning Studios in Thailand and Singapore. Ikano also relaunched IKEA for Business in Southeast Asia to better serve small enterprises in setting up Swedish-inspired office solutions, shops and more.

During a second pandemic year, many people turned to IKEA to set up workspaces, playrooms and kitchens. The company’s IKEA stores sold more than 5 million bowls and plates from its OFTAST series – including 723,000 pieces in Singapore alone.

Ikano invested to defend its offer at Ikano Centres in Malaysia and Thailand, supporting our tenants through tough times and securing a healthy lease rate of 92% in a challenging retail landscape. “We made sure that our centres continue to be meeting places for the many,’’ says Mr. Rojkjaer, ‘’offering a safe and fun day out as our economies open up and learn to live with COVID.”

Ikano Retail soon plans to open the largest IKEA store in the world in the Philippines, where it has recently started operating ecommerce, and has plans for expansion into Vietnam in the years ahead.

Check out the Ikano Retail highlights reel from the 2021 financial year (Sep 2020 to Aug 2021).