Ikea reports Nordic and world wide growth record

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Ikea reports a new record year, ending in August 2014.

Sweden and Denmark reports their best performance ever – and Finland reached a small increase of sales, but a decreasing profit.

Ikea Group’s net profit amounted to  3.3 billion EUR for fiscal year ending 31 August 2014. The market had a strong growth in China and North America, and a positive trend in Europe.

”We have a good fiscal year behind us. I’m glad to see increased growth in all sales channels: in existing stores, the number of new stores and e-commerce. We reached a number of milestones on the road to energy independence and sale of products that give customers the opportunity to live more sustainably at home increased by 58%. Sustainability is an integrated part of our business strategy,” says Peter Agnefjäll, CEO of the Ikea Group.

Total sales increased by 5.9% (28.7 billion euros, adjusted for currency) compared with the previous fiscal year. The five largest markets were Germany, USA, France, Russia and Britain.

”A key factor for the positive development is that we do not focus on short-term profits, but has a long-term perspective on the business. We strive to continuously provide customers with lower prices and make substantial investments in the future,” says Peter Agnefjäll.

In Sweden, 2014 was a new record year with a sales increase of six percent reaching a turnover of 13.8 billion SEK in store sales. The number of visitors on the local website reached 65 million, an increase by 32 percent.

”We have a busy year behind us with good development. We achieved record figures in the session and also in terms of sales, which is a sign that we are on the right track. Our most important resource is our people and I am proud of their amazing work”, says country manager Håkan Svedman.

Ikea Denmark  contributed with a revenue growth of four percent and  a turnover of 3.4 billion DKK. The accounts reflect that Ikea Denmark has been able to attract more visitors and convert them into customers.

”The outcome rests largely on a sharpened focus on customer needs before, during and after a visit to IKEA. Fixed low prices, a wide dynamic range, varied selection of food in the restaurants, with repatriation and assembly of furniture and especially attentive and personal service in the warehouse has strengthened the customer’s total experience of a visit to Ikea. Our long-term efforts to increase our availability and service levels are starting to bear fruit,” says Dennis Balslev, CEO of Ikea Denmark.

The current accounting comes after a five-year period in which Ikea has spent much effort to invest in new stores and remodeling of existing stores in Denmark.

”We will continue to invest in our stores, but our focus in the coming years will much more concentrate on the individual employee’s skills and commitment in meeting with the customer,” says Dennis Balslev.

In Finland, the growth is more moderate, 0.5 percent. The turnover reached 313 million EUR with a significant upturn in online sales. But the profit of 6.6 million EUR was a decrease by 42 percent compared to 2013.

According to communication manager Annika Stubbe, Ikea Finland has made large investments in the stores that affect the result, but no new stores have opened since 2012. To Kauppalehti, Annika Stubbe says a decision about Lappeenranta is postponed until spring. Whether there will be a store in Vasa or Seinäjoki is still not final.

Ikea Norway has not published any numbers yet.