Ikea Southeast Asia and Mexico’s division has seen its first fall in revenue following more than a decade of growth.
During the last financial year the worldwide furniture and homewares retailer saw turnover fall 7.4 per cent to USD 0.81 billion – USD 66.20 million down on the previous year – though e-commerce sales doubled.
By the end of the financial year more than 525,000 online orders had been placed, totalling USD 99.30 million in e-commerce revenue.
“This crisis brought out the best in us,” said Christian Rojkajaer, MD of Ikea Southeast Asia and Mexico.
“The entrepreneurial spirit in our teams hit a new high, and our business developed with unparalleled speed. We were under incredible pressure and we did not always manage to meet our customers’ expectations, but most were understanding.
“We emerged strong and I have never been prouder of our teams and our impact in the community.”
The business in Singapore earned USD 347.20 million, while Malaysia brought in USD 347.20 million and Thailand USD 253.04 million. And, while FY20 has been a difficult year for many in the retail space, Ikea is planning on expanding further through the region in the new year, setting up online shops in Mexico and the Philippines before opening launching a bricks-and-mortar presence.
According to Rojkajaer, the crisis had an observable impact on how many consider the value of their life at home.
“At a time of urgent need, people turned to Ikea to set up home offices, study corners, outdoor living areas and functional kitchens,” Rojkajaer said.
“Many realised that home really counts, and it’s worth investing to make our living spaces comfortable, functional and beautiful.”