Ikano Retail, owner of IKEA Thailand, posts EUR 1.09 billion in total turnover

Despite a tough year for retail, IKEA Thailand is lowering prices on nearly 2,400 essential articles and home delivery service to help customers cope with the rising cost of living

THAILAND – Ikano Retail, the IKEA franchisee that brings Swedish home furnishings to Thailand, Malaysia, Singapore, Mexico and the Philippines, posted EUR 1.09 billion (THB 39.76 billion) in turnover in its 2024 financial year.

With 14 omnichannel IKEA stores and five IKEA-anchored shopping centres in its portfolio, Ikano Retail is one of 12 IKEA franchisees around the world. The retailer posted a modest performance against last year, with total revenue rising 1.3 percent year-on-year.

In Thailand, Ikano Retail owns and operates an omnichannel business with four IKEA Stores (IKEA Bangna, IKEA Bang Yai, IKEA Phuket and IKEA Sukhumvit, which opened on 1 December 2023) and one shopping centre, Megabangna, in East Bangkok. It closed its financial year on 31 August with a total turnover of EUR 286 million[1]across its stores and centres, up 3.9% from last year.

“Worldwide, retail had a tough year, and so did we,” said Ikano Retail CEO Christian Roejkjaer, acknowledging the impact inflation and the rising costs of living have had on consumers. “But coming together to turn a challenge into an advantage is the very essence of our Ikano and IKEA company culture,” Mr Roejkjaer added.

Despite mixed performances across its markets, the retailer is committed to lowering prices on essential and best-selling home furnishing items, food and services. “We’re passing on savings where we can because we know how tough it can be for households with thinner wallets,” said Mr Roejkjaer.

At a time of high inflation and living costs, IKEA Thailand is siding with the many people by investing in lower prices to help Thais feeling the pinch find savings where it matters. The furniture retailer has lowered prices again this year on over 2,400 articles, more than 85% of which are essential or best-selling items in the country, from its small storage boxes to kitchen furniture. IKEA Thailand has also lowered the price on home delivery service to help customers stretch their hard-earned savings further.

Across Ikano Retail markets, IKEA storage solutions once again met the needs of customers looking to declutter their spaces. Items from the MALM, PAX, and BILLY families took the top three spots respectively, based on total sales value from all 14 of Ikano Retail’s IKEA stores. In Thailand alone, 34,460 BILLY bookcases were sold as many turned to the iconic IKEA shelf to keep their homes and offices organised. Meanwhile, IKEA Food remained a destination across markets, again welcoming 14.5 million visits across all its IKEA restaurants, cafes, bistros and Swedish Food Markets. Total food sales were down 3 percent, partly impacted by global food supply, but the business will continue to meet the needs of customers looking for delicious and more affordable food options.

In addition to its IKEA stores, Ikano Retail expands its portfolio by developing land and investing in office, residential and mixed-use projects with its Ikano Centres business. The five shopping centres across Malaysia and Thailand serve as vibrant Meeting Places for the communities around it.

In FY24, Megabangna was once again East Bangkok’s top New Year countdown destination with the Mega Countdown 2024. Over 371,000 visitors gathered for live performances, a grand countdown, and spectacular fireworks to welcome the new year.

Said Mr Roejkjaer, “Big thanks to the Ikano Retail team that took us through the year to become leaner, more agile and making our store-based omnichannel business model more customer focused than ever.”

FAST FACTS

1 September 2023 – 31 August 2024

Turnover from Ikano Retail’s IKEA stores contribute to the total result to be reported on 8 October by the global IKEA franchisor, Inter IKEA Group. The table below reflects Ikano Retail’s store and centres turnover.