IKEA turnover up 14% in last business year

Retail

press release

Home furnishings retailer IKEAʼs revenue in Hungary rose 14% year-on-year to HUF 61 billion in the business year ending August 31, the company said on Thursday. IKEA achieved the fifth highest growth in Hungary among its 29 markets.

Marek Feltl, IKEAʼs regional managing director, said the average visitor to IKEA in Hungary spent HUF 18,300 during the last business year, up from HUF 16,700 a year earlier. Sales of kitchen products were up 19%, Feltl added, cited by national news agency MTI.

Online sales accounted for 2.5% of turnover, though about one-fifth of those purchases were made by new customers. IKEA launched online sales for in-store pickup in the middle of last year. This year, it will start home delivery for orders over the internet, which could lift online sales to 6-7% of turnover. For the current business year, IKEA expects double-digit growth, even over 14%, Feltl said.

Visitor numbers at IKEAʼs newest store in Budapest, which opened last summer, have started to approach those at its other two stores in the capital area, said the new storeʼs director, Ágnes Szabó. At the weekend, the new store has as many as 10,000 visitors, she added.

In the last business year, the three stores drew 5.5 million visitors, of whom 3.1 mln made purchases. IKEA did not disclose profit figures.

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