Ikea suffers first decline in sales since entering South Korea

(Source: Korea Bizwire)

IKEA Korea saw its sales fall this year due to the spread of Covid-19 and a drop in home sales, the first such decline after eight years of continuous growth in its South Korean operations.

According to company data, the South Korean arm of the Swedish furniture maker’s sales for its fiscal year 2022 stood at US$475 million, down 9 per cent year on year.

The company’s operating profit fell by 26 per cent year on year to USD16.8 million, with its net profit falling by 36 per cent.

IKEA Korea blamed the disappointing results on the decline in the number of customers visiting its brick-and-mortar stores.

In the fiscal year 2022, the number of visitors to its online and offline stores stood at about 66.8 million, down about 5 per cent from a year ago.

The decline in home sales and demand for furniture dealt another blow to IKEA Korea’s sales.

In the meantime, the furniture maker plans to open new stores, including three in the Seoul metropolitan area and one in Busan, aimed at expanding the point of contact with customers and increasing sales.

The story was originally published on Korea Bizwire.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.