Ikea stands firm by goal: 100 % turnover growth by 2020

Ikea stands firm by goal: 100 % turnover growth by 2020

Swedish furniture chain Ikea is still holding on to its prediction of doubling turnover by 2020. To manage that type of increase within 8 years, the yearly turnover would have to increase 10 % each year. Past fiscal year however, the growth was only 3.1 %.

Slow economic growth is cause

"Our goal has so far proved to be too aggressive”, Göran Grosskopf has said to Swedish business paper Dagens Industri. Grosskopf represents Ingka Holding, Ikea’s parent company. “Sales haven't developed as fast as we thought.”Ikea blames the slower turnover growth in its latest fiscal year on the slower economic growth, mainly in South Europe. 

 

That does not mean that Ikea will let go of its ambition, even though Grosskopf is taking into account that the goal may only be reached in 2021. An Ikea representative has confirmed the statement: “We continue to work according to our ambitious growth strategy”.

 

Grosskopf denies he wants to slow down the plans after founder Ingvar Kamprad had critisized Ikea’s plans to open 25 new stores per year.The founder is currently 87 years old and while he has limited real power within Ikea, his words still have some effect within Ikea’s management.

 

 

 

(Translated by Gary Peeters)

Questions or comments? Please feel free to contact the editors


Two possible locations left for Ikea in West Flanders

25/07/2017

Swedish furniture chain Ikea has identified two possible locations for a new store in West Flanders: the Ring Shopping Kortrijk Noord and Ter Biest in Wevelgem.

Another turnover growth for Beter Bed

14/07/2017

Beter Bed Holding’s second quarter turnover grew to 94.6 million euro, up 5.3 % compared to last year. Even if the Sängjätten acquisition is excluded, the company still posted nice growth numbers.

Danish designer brand Bolia opens store in Ghent

26/06/2017

A new Scandinavian design brand will venture into Belgium: Danish Bolia opened its first Belgian store on 22 June in a very special location: the “Wolweverskapel” (the wool weaver’s chapel) in the Kortedagsteeg in Gent. 

Apple and Ikea into augmented reality together

23/06/2017

Technology company Apple and furniture store chain Ikea are collaborating on augmented reality that should be revealed in the fall. The app should give customers the opportunity to see how their purchase fits their own interior.

Ikea wants to sell through third party online platforms

08/06/2017

Swedish furniture chain Ikea wants to launch a pilot program next year, which would bring the chain’s products to third-party web shops like Amazon or Alibaba.

Ikea jokes about other uses for its famous blue bag

02/06/2017

Ikea Dubai released a limited edition of its famous blue Frakta bag. This one includes instructions about how to use the bag in other ways.

Back to top