SG IKEA retailer posts 2.1% YoY revenue growth to $1.67b for 2023

Its revenue in Singapore declined by 2% during the period.

IKEA franchisee Ikano Retail, which operates in Singapore Malaysia, Thailand, Mexico and the Philippines, reported a 2.1% year-on-year (YoY) revenue growth in financial year 2023 to reach $1.67b, despite mixed performance from its stores.

In a statement, Ikano Retail said storage products are among the best-selling of all 13 Ikano-managed locations, with MALM four-drawer chests, BILLY bookcases, and KLEPPSTAD wardrobes dominating total sales.

IKEA Food continued to become a mainstay for shoppers, with visits rising to 13% and sales up to 11.7%.

“It continues to be tough economic times for all retailers, including us, with higher costs all along our value chain, inflation, and a more cautious consumer sentiment. Despite that, our IKEA stores and shopping centres attracted 119.6 million visits, up 5.7 percent from last year,” Ikano Retail CEO Christian Roejkjaer said.

Meanwhile, IKEA's performance in Singapore saw a 2% dip in revenue to $384.2m.

“Despite the headwinds, our stores remained at the heart of our omnichannel experience as we
continued to develop ikea.sg and created more ways for customers to meet and shop with us,” Roejkjaer said.

Roejkjaer said it increased its electric vehicles in Singapore, which services around 20% of IKEA's home deliveries.

The CEO added that it opened three new collection points in Malaysia and launched IKEA Planning studio online in the Philippines. It will also open the first IKEA store in Bangkok, Thailand,  and Mexico's first standalone IKEA store.