While the French furniture market struggled, Ikea has managed to keep its footing. CEO Stefan Vanoverbeke is "fairly satisfied" and is still ambitious: he wants to get a 20 % market share by 2020 through another 10 stores.
Level in struggling furniture market
Ikea France has had a satisfying fiscal year: it had to accept a first turnover drop in 2012-2013 (- 4.3 %), but it has managed to keep things level in 2013-2014 at 2.38 billion euro.
Knowing that the French furniture market has dropped 2.5 % in the first half of 2014, after it had also dropped 2.9 % in 2013, Ikea's result is more than decent. "Considering the current situation, I'm fairly satisfied", Stefan Vanoverbeke said. Thanks to price drops, he has managed to attract 2 % more customers.
Ambitious plans for the future
Vanoverbeke has not given any profit numbers (as IKEA is not on the stock exchange, it isnot obliged to do so), but he does mention an "improvement of the net profit this year" which "gives us confidence to invest".
Past fiscal year, Ikea opened its 30th French furniture store in Clermont-Ferrand, while Mulhouse and Bayonne will also get a store in 2015. "By 2017, we will have opened another 7 stores", Vanoverbeke said. He wants 40 French stores by 2020, representing a 20 % market share. In the 2013-2016 period, the new stores will cost 600 million euro.
The CEO also wants to launch the (successfully trialed) click&collect system to 5 new stores before rolling it out in the entire network. He even wants an inner-city store in Paris in the long run...