"We were late to introduce eCommerce, but our ambitions have not been marred by that: over the next 5 to 6 years, we aim to quintuple our online turnover, from 1 billion euro to 5 billion euro", IKEA CEO Peter Agnefjäll told CNBC.
Room for online growth
There definitely is room to improve its online sales: currently, the Swedish furniture store only has an online presence in 13 markets, while it has physical stores in 42 markets. Its total online turnover, a mere 1 billion euro at this point, is therefore only a blip compared to its total turnover, at 30 billion euro.
In the upcoming years, Ikea wants to boost that turnover 10 % per year and that is only for Europe, where it generates 80 % of its turnover. By 2020, it should reach 50 billion euro in this region. Part of the growth has to come from the online channels, according to Agnefjäll and that is why it is currently looking at options to bring its products to the customers in the most efficient manner.
The CEO also sees several benefits to the fact that Ikea has entered the online market a bit later: "It allows us to skip several steps in the technological evolution and immediately focus on apps for mobile devices like smartphones and tablets."