On October 6th, IKEA, a Swedish furniture giant, released its annual performance data for fiscal year 2020 as of August 31: the total sales of 445 Ikea stores and e-commerce companies (including product sales and service revenue for Ikea customers) reached 39.6 billion euros, down 4% from 41.3 billion euros in the same period last year.
Jon Abrahamsson Ring, the new CEO of Inter IKEA in March this year, said that the company's annual total sales were higher than what he estimated during the worst of the new Crown epidemic.
According to Jon, during the epidemic, Ikea's demand for low-priced products increased, and the sales of this part of products reached 60% from May to August, generally, this proportion is only about 45%.
During the new Crown epidemic, most Ikea stores around the world were closed for 4 weeks on average, resulting in a 10% drop in retail sales in the same store throughout the year. However, because the epidemic also made people pay more attention to home life, excluding the impact of temporary closure, the adjusted annual comparable sales were the same as the same period last year. In fiscal year 2020, IKEA opened 33 new stores, with a total customer flow of 0.825 billion offline stores.
In fiscal year 2020, the sales of Ikea e-commerce increased by 45% year-on-year, accounting for 15% of the total retail sales, and the number of IKEA Web visits reached a record of 4 billion. Jon also revealed that even after offline stores resumed business, online sales remained strong.
Ikea expanded its e-commerce business to three new markets this fiscal year, including China (on March 10, Ikea launched its official shopping APP in China and launched Ikea Tmall flagship store at the same time).
Jon expects the company's performance to resume growth this year. He said: "We feel very strongly that people will continue to pay attention to the family, family life and how to create a better home in the future".
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IKEA retail company Ingka Group (also known as IKEA Group, hereinafter referred to as Ingka) also announced the performance data of franchise business system. The total sales of 387 stores under Ingka decreased by 4% year-on-year to 35.2 billion euros, of which online sales increased by 60% year-on-year, accounting for 18% of the total sales.
Jesper Brodin, CEO of Ingka, also revealed that the retail company's sales in recent weeks increased by 7% ~ 8% year-on-year. Jesper Brodin said that the impact of the epidemic on people's interest in home life reached an unexpected level.
At the beginning of the epidemic, consumer demand mainly focused on office and cooking supplies, but now demand in various fields is rising. "We don't think that people's strong interest in family life is just the release of long-suppressed demand (due to the epidemic). If so, we would have seen the growth slow down."
(* Inter IKEA owns the IKEA brand. Ingka Group is a pure retailer whose business is based on the franchise agreement signed with Inter IKEA.)
in addition, Ikea is shifting its business focus from traditional large suburban warehouse stores to small downtown stores and e-commerce. This year Ikea plans to add 50 new stores in cities such as New York, Los Angeles and Chicago, mainly small stores in downtown.
When talking about the concept of new stores, Jon explained, "this is to accelerate our ambition to create a more convenient shopping experience into reality. We will never open only big stores again. In the future, stores will adopt mixed mode, including small stores closer to residential areas and working places."
it is reported that these small new stores will also try to set up kitchen planning studios and provide services such as delivery, furniture assembly and furniture rental. 30 will be laid out in the next 12 months.
In April, in order to adapt to the changes in online shopping needs, Ikea also acquired Geomagical Labs, an American AR (augmented reality) technology start-up company, hoping to apply the latter AR imaging technology to pre-sales services, help customers feel the placement effect of furniture products more intuitively.
(Source: gorgeous, invasion and deletion)
