Sales at Ikea stores in Southeast Asia exceeded SG$1 billion (US$723 million) for the first time this year, reflecting healthy growth for a big-box retail business.
Christian Rojkjaer, MD of Ikea Southeast Asia, says more than 98 million customers passed through the company’s eight full-format stores in Singapore, Malaysia and Thailand and its associated shopping centers. (Ikea stores in other parts of Asia are run by other franchisees).
Online, there were 51.7 million visits to Ikea websites – up 16 percent year on year.
“When our retail sales are combined with rental income generated from our three Ikea- anchored shopping centers in the region, our total revenue reached SG$1.21 billion – 20 percent more than last year,” said Rojkjaer.
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“These results show that our Ikea stores and shopping centers have fantastic potential to grow. We make a difference to many people by making life more comfortable, more beautiful and more sustainable – all at an affordable price.
“We face increasing competition and changing customer behaviors,” he added, “but our vision to create a better everyday life for many people is perhaps more powerful than ever. We aim to offer the best deal there is in every market and we have a wide price ladder within our range so, even in challenging times, Ikea has something for everyone no matter the size of his or her wallet.”
In November, Ikea Southeast Asia will open its new Toppen shopping centre in Johor Bahru, which features a rooftop with outdoor play spaces, a sports zone and a community garden.