Ikea franchisee's Singapore revenue grows 21.2% in FY2021

Specifically for Singapore, Ikano's revenue rose 21.2 per cent on the year to S$368 million.
Specifically for Singapore, Ikano's revenue rose 21.2 per cent on the year to S$368 million.PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - Ikano Retail, the Ikea franchisee that brings Swedish home furnishings to Singapore, Malaysia, Thailand and Mexico, generated $1.16 billion in total turnover for the 12 months ended Aug 31, up 3.3 per cent from the previous fiscal year.

Specifically for Singapore, Ikano's revenue rose 21.2 per cent on the year to $368 million.

Its operations here comprise two full-format Ikea stores in Tampines and Alexandra, and a small-store concept in Jem mall in Jurong, which opened in April. These outlets employ more than 1,000 workers in Singapore.

Across South-east Asia and Mexico, the company has a total of 11 Ikea stores and five Ikea-anchored shopping centres. Ikano is one of 12 franchisees of the Swedish home goods giant around the world.

Mr Christian Rojkjaer, chief executive of Ikano, noted that even as the company navigated Covid-19 closures and "turbulent times" for its shopping centre business, it executed its expansion plans, grew its e-commerce sales by 57 per cent and safeguarded jobs.

"We lost 17 per cent of our trading days, faced the worst supply challenges in our history, and contended with limits on food operations and further restrictions," he added.

Revenue for its Malaysian operations tumbled 13.9 per cent year on year to $406 million; Thailand's turnover dipped by 3.3 per cent to $333 million.

Singapore and Mexico contributed to the bulk of Ikano's growth in the latest financial year, the company said in a statement on Thursday (Oct 14).

In Mexico City, it opened Latin America's first Ikea store in April. Revenue from the outlet, till the end of FY2021 in August, amounted to $50 million.

Ikano also entered the home renovation and design business, with new Ikea Planning Studios in Thailand and Singapore.

In the Philippines, Ikano recently started e-commerce operations, and plans to open the largest Ikea store in the world. The company intends to also expand into Vietnam in the coming years.