“China, growth markets and Russia continue to have strong growth. Europe, has been a bit more troublesome the past five to six years, but is coming back.”
Ikea Group, which runs the majority of the world’s Ikea stores, is targeting 50 billion euros in sales by 2020 as it adds outlets, expands its online offering and introduces collections more frequently. Full-year revenue increased 3 percent to 28.7 billion euros, excluding shopping centers, as spending accelerated in China, the company said Sept. 9.
Ikea reduced prices on products by an average of 1 percent and the gross margin narrowed by 0.4 percentage points to 42.9 percent, the retailer said today.
Closely held Ikea Group, which owned 315 outlets in 27 countries as of Aug. 31, said store visits increased by 4.7 percent to 716 million during the year while visits to its website grew by 15 percent to 1.5 billion.
The group is controlled by Ingvar Kamprad, the company’s founder and the world’s eighth-richest man, according to the Bloomberg Billionaires Index.