The local operations of IKEA registered slightly lower turnover in financial year ending August 31 amid rising inflation.
Ikano Retail, the IKEA franchisee of Swedish home furnishings to the Philippines, yesterday said it closed its financial year with a turnover of 141 million euros, down 2 percent from last year.
To help customers cope with rising costs, IKEA Philippines said it has lowered prices again this year on over 2,000 articles, 20 percent of which are essential or best-selling items,
from its sleep solutions to cookware. IKEA Philippines has also lowered the price on parcel and delivery services and offered free Click and Collect options.
Ikano Retail’s network that includes the Philippines, Malaysia, Thailand, Singapore and Mexico, posted 1.09 billion euros in turnover in its 2024 financial year, a modest 1.3 percent increase.
Ikano retail is one of 12 IKEA franchisees around the world and has 14 omnichannel IKEA stores and five IKEA-anchored shopping centers in its portfolio.
In the Philippines, Ikano Retail owns and operates the world’s largest IKEA store with IKEA Pasay City, an omnichannel business with ecommerce, Click & Collect pick-up points, IKEA Food and a B2B arm, IKEA for Business. It closed its financial year on 31 August with a turnover of EUR 141 million, down 2 percent from last year.
“Worldwide, retail had a tough year, and so did we,” said Ikano Retail chief executive officer Christian Roejkjaer, acknowledging the impact inflation and the rising costs of living have had on consumers.
Across Ikano Retail markets, IKEA storage solutions are the most sellable items in Ikano Retail markets, including the Philippines. In the Philippines alone, 14,675 BILLY bookcases were sold.
IKEA Philippines during the financial year sold 2.28 million OFSTAT bows and plates and 5.36 million meat, plant, chicken and vegetable balls which are among the popular products available locally.
