Although its primary growth market has been Europe, where its current annualized growth rate is 40%. It is also targeting India where it’s currently finalizing deals to buy land in multiple cities, including, Hyderabad, Bangalore, Mumbai and New Delhi.
According to a top executive at the IKEA Group, the furniture retailer expects its turnover to grow by 8-10% this financial year. If it were to achieve this, it will be on track to hit its target of $56.9 billion (50 billion euros) by 2020.
“We are on that journey. That means we need to grow 8-10 percent annually to reach it and that is probably roughly where we’ll land this year,” said Peter Agnefjall, IKEA’s CEO. “We are well on track to realise the plans we have.”
Agnefjall made these comments on the side-lines of a design event in the Swedish town where it first set up shop. As per Agnefjall, the trend in the demand for its products remained pretty similar to the previous years with Europe, its largest market, making a continued recovery.
As for China, which is a key growth market for the company, the rapid cooling of the economy has not had much impact on the company.
“There has been talk for three years that China is slowing down. We don’t see those signs,” said Agnefjall.
IKEA has reported a rise of 11.5% sales, from its previous fiscal year, to 32.7 billion euros. Online sales, which totalled to nearly $1 billion euros last year, is set to grow by 40% this year, which roughly is its annual growth in the previous three years, said Agnefjall.
It further plans on expanding its foothold in India where it is set to open its first store in the city of Hyderabad. It is also closing in on deals to buy land in Bangalore, Mumbai and New Delhi, in order to open stores in these locations.
($1 = 0.8795 euros)
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