Ikea plans to expand to a dozen new markets in coming years

Courtesy Ikea

Ikea finally plans to open a store in Estonia

Last year Ikea's United Kingdom profits slumped by almost 40% to £87m, a decline blamed on higher wages and the cost of investments in its stores and website.

"We expect 7 million (70 lakh) people to visit the store in a year as a range of affordable and elegant home furnishings and other items will be on display for sale", asserted Betzel on the occasion.

"Bengalore is a special city for us as we have active participation from our total value chain - IKEA Foundation, IKEA suppliers, IKEA social entrepreneurs and now IKEA retail". The company has opened 19 new outlets around the globe in the past one year, including its first in Hyderabad and Latvia in August. It also plans to start selling products to consumers in Mexico, Estonia, Ukraine, Puerto Rico, Oman, Luxembourg, Macau and the Philippines as it seeks to reinforce its dominance as the world's leading furniture retailer.

"Ikea will create a multichannel experience for its customers in India". "We will offer new and different ways to shop the Ikea product range - online, in remote locations and in city centres".

"We see that we have flattened out a bit on sales in existing stores, while we have strong growth through expansion and online", Loof said.

Total store turnover, comprising sales of both products and services, rose 1.3 per cent to €38.8 billion (US$44.5 billion) from €38.3 billion a year earlier, the company said in a statement.

The smaller Ikea stores cropping up in central urban locations are also providing new opportunities for the company to increase sales and customer engagement. The showroom - on a stretch of Tottenham Court Road, central London, known for furniture stores - is just 400 sq metres and took months, rather than years, to open. The company now has online stores in 35 markets after its operations in Belgium, Romania and Malaysia introduced e-commerce.

Ikea's foray into South America will see the company open nine stores and expand online in Chile, Colombia and Peru, through the Falabella franchise, in the coming decade. That means new Ikea franchisees should be able to "reach bigger volume faster with lower costs", Loof said.

In reported currencies, that was 1 percent higher than a year earlier.

After acquiring assembly service TaskRabbit in 2017, Ingka said it's expanding that service to Canada this year after integrating it fully in the USA and UK.

Altre Notizie