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IKEA discloses profit figures for first time

 

Sweden-based home furnishings retailer IKEA has for the first time revealed financial figures, showing that reported group sales for the year ended 31 August 2010 increased by 7.7% to EUR23.1 billion (USD28.2 billion). The furniture giant also revealed that net sales for the financial year ended 31 August 2009 increased by 1.4% to EUR21.8 billion (USD30.3 billion), while net profit increased 11.3% to EUR2.5 billion (USD3.5 billion).

The retailer said that the bulk of the 2009 profit was reinvested in existing, relocated and new IKEA stores, as well as in factories and retail centres. "Good profitability is needed to carry out our extensive growth programme on existing as well as new markets, to give more people access to the IKEA range,” said IKEA Group President and CEO Mikael Ohlsson.

IKEA also said that it is to embark on a cost cutting programme. Ohlsson said: "A growing IKEA needs to pay a lot of attention to staying lean and simple. Therefore, we have launched an extensive programme for a lower cost structure at IKEA, where the gains will be reinvested in lowering the prices to our customers even more."

www.planetretail.net

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