IKEA Malaysia makes a turnover of RM1.3b

by FAYYADH JAAFAR / pic by TMR FILE 

IKEA Malaysia operations made a combined turnover of RM1.3 billion from September 2020 until August 2021. 

Sales were mainly derived from IKEA Damansara and IPC shopping centre, IKEA Cheras and MyTown shopping centre, IKEA Tebrau and Toppen shopping centre, and IKEA Batu Kawan and Batu Kawan Link, Ikano Retail said in a statement yesterday. 

Ikano Retail is the IKEA franchisee that brought Swedish home furnishings to Malaysia. 

IKEA Malaysia’s online sales more than doubled for the period to RM247 million. 

Ikano Retail which also manages operations in Singapore, Thailand, Mexico including Malaysia made combined turnover of RM3.6 billion in the period up by 3.3% in a year marred by Covid closures and turbulent times for the company’s shopping centre business. 

“We lost 17% of our trading days, faced the worst supply challenges in our history and contended with limits on food operations and further restrictions,” said Ikano Retail CEO Christian Rojkjaer.

“But, even amid Covid, we executed expansion plans, grew our e-commerce sales by 57% and safeguarded jobs. Most importantly, we continued to help our customers make life at home better,” he added. 

Ikano currently operates 11 IKEA stores and five IKEA-anchored shopping centres in its portfolio all across the four markets. 

The company is one of 12 IKEA franchisees around the world. 

Its global IKEA franchiser is Inter IKEA Group. 

Ikano Retail added that much of the growth comes from Singapore and Mexico, where the company opened new stores. In Singapore, Ikano Retail opened IKEA Jurong — South-East Asia’s first small-format IKEA store, selling the full range through digital solutions and multi-skilled co-workers. 

In Mexico City, Ikano Retail opened the first IKEA in Latin America and clocked almost 15 million visits to its IKEA Oceania store and website combined. 

Ikano Retail also entered the home renovation and design business, with new IKEA Planning Studios in Thailand and Singapore. 

It has also relaunched IKEA for Business in South-East Asia to better serve small enterprises in setting up Swedish-inspired office solutions, shops and more. 

“During a second pandemic year, many people turned to IKEA to set up workspaces, playrooms and kitchens. The company’s IKEA stores sold more than five million bowls and plates from its OFTAST series — including 2.7 million in Malaysia alone. 

“Ikano Retail invested to defend its offer at Ikano Centres in Malaysia and Thailand, supporting our tenants through tough times and securing a healthy lease rate of 92% in a challenging retail landscape,” said Rojkjaer. 

Ikano Retail plans to open the largest IKEA store in the world in the Philippines soon, where it has recently started operating e-commerce, and has plans for expansion into Vietnam in the years ahead.